As the trading week began, the Dax index failed to make up for its losses. By the Xetra market close, the index was calculated at 21,282.18 points, a minus of 0.53 percent compared to the previous trading day.
Market analyst Konstantin Oldenburger from CMC Markets commented on the current developments, saying, “The news from Chinese start-up DeepSeek forces investors to reevaluate their positions in large technology companies and the entire AI supply chain. The valuations have risen too high in recent months and have thus become vulnerable to suddenly emerging competition from the Middle Kingdom.”
The big question for this week is whether a second sell-off will ensue after the quarterly earnings and central bank meetings, or if the bargain hunters have already become so confident that they won’t let this opportunity pass and are already in rally mode, Oldenburger added.
The uncertainty is particularly palpable among Siemens Energy investors, as the company’s stock plummeted by over 20 percent in the minus just before the market close.
The European common currency was slightly stronger in the afternoon, with one euro costing 1.0500 US dollars and one dollar being worth 0.9524 euros.
Gold prices, on the other hand, took a significant hit, with one fine ounce being sold for 2,740 US dollars (-1.1 percent) in the afternoon, which is equivalent to a price of 83.91 euros per gram.
Meanwhile, the oil price sank significantly: a barrel of the North Sea’s Brent variety cost 77.25 US dollars by 5 pm German time, a decrease of 125 cents or 1.6 percent from the previous day’s close.