The DAX experienced a slight downturn on Wednesday, closing at 24,009 points – a 0.2% decrease compared to the previous day’s close. Following a negative opening, the index quickly recovered and steadily gained momentum throughout the morning before reversing course and entering negative territory in the late afternoon.
Market analyst Andreas Lipkow attributed some of the index’s earlier gains to the ongoing US quarterly earnings season, particularly the reports released by major US banks. He noted that JP Morgan and Citi reported results yesterday and Goldman Sachs followed today, with the latter exceeding market expectations and benefitting from strong trading activity. Lipkow further commented on the surprising resilience of the DAX in the face of ongoing geopolitical uncertainties, suggesting investors are currently demonstrating a high degree of confidence.
Trading on Wednesday saw Commerzbank and Deutsche Bank shares performing strongly, ranking closely behind Munich Re in the Frankfurt stock exchange. At the bottom of the list were shares of Porsche, BASF and Volkswagen.
Energy markets displayed mixed signals. Natural gas prices rose, with August delivery reaching €35 per megawatt hour – a 1% increase from the previous day. This level implies a consumer price of at least 8 to 10 cents per kilowatt hour (kWh), including ancillary costs and taxes, if sustained. Conversely, the price of Brent crude oil decreased, trading at $68.11 per barrel by mid-afternoon – a 60-cent or 0.9% reduction compared to the previous trading day’s close.
The European currency strengthened during Wednesday afternoon, with the Euro trading at $1.1670, equating to $0.8569 per Euro.