The German DAX index experienced a slight increase on Wednesday, closing the Xetra trading day at 24,262 points, representing a 0.2 percent gain compared to the previous day’s close. Following a hesitant start to the session, the index shifted into positive territory in the morning and maintained a stable level throughout the afternoon, remaining above the previous day’s valuation.
Market analyst Andreas Lipkow attributed the movement, in part, to recent U.S. economic data. “The U.S. jobs market figures and the U.S. GDP both indicate a very robust and well-functioning economy in the United States” he commented. “Open positions reached 144,000, significantly exceeding the expected 107,000 and the U.S. gross domestic product stands at 3.00 percent, also well above anticipated values. There’s no sign of a slowdown”. He further explained that this data has dampened expectations for imminent interest rate reductions in the U.S. “In such an economic environment, there’s no need for interest rate measures. They would only unnecessarily heat up the economic engine and further fuel inflationary risks.
Throughout the trading day, shares of Porsche, Siemens Energy and Commerzbank led the gainers on the Frankfurt Stock Exchange. Conversely, Adidas, Symrise and Mercedes Benz were among the underperformers. Despite a significant increase in revenue and earnings reported in Adidas’s second-quarter figures, the company is hesitant to raise its profit forecast due to ongoing tariff risks.
Energy prices also saw upward pressure. Natural gas for delivery in August traded at €35 per megawatt-hour (MWh), a 1 percent increase from the previous day’s price. This level implies a consumer price of at least approximately eight to ten cents per kilowatt-hour (kWh), inclusive of ancillary costs and taxes, if the price persists.
Crude oil prices mirrored the trend, with a barrel of Brent North Sea crude reaching $72.96 at approximately 17:00 German time, representing a 45-cent or 0.6 percent increase from the previous trading day’s close.
The euro weakened slightly during Wednesday afternoon trading, fetching $1.1482; conversely, the dollar was worth €0.8709.