A German stock market index, the Dax, closed with a moderate gain on Tuesday, standing at 23,381 points at the end of the trading day, a 1% increase from the previous day’s close. The index had reached a new all-time high of 23,476 points in the morning, before experiencing some profit-taking and stabilizing at a steady level by the close.
Market analysts attributed the positive market reaction to the increased ZEW index and US economic data, with one analyst noting that the recent increase in US import prices could be an early sign of the new US trade policy.
Despite the German government’s plan to increase the national debt by billions of euros, which was passed in the Bundestag on Tuesday, the market participants seemed “not yet impressed” by the development, according to the analyst. The Dax’s current level of around 23,400 points is seen as a resistance level and the market’s buying enthusiasm appears to be waning above this level, the analyst said.
The top performers in the Frankfurt stock market were the shares of Rheinmetall, Bayer and Deutsche Bank, while the bottom of the list was occupied by the stocks of Beiersdorf, Heidelberg Materials and Vonovia.
Meanwhile, the price of natural gas decreased, with one megawatt-hour of gas for April delivery costing 41 euros, a 1% decrease from the previous day. This would translate to a consumer price of at least 9 to 11 cents per kilowatt-hour, including additional costs and taxes, if the price level were to remain stable.
Oil prices also decreased, with one barrel of North Sea Brent crude oil selling for 70.82 US dollars at 5 pm German time, a 0.4% decrease from the previous day’s close.
The European common currency, the euro, was slightly stronger, with one euro buying 1.0931 US dollars and one US dollar buying 0.9148 euros.