The German stock market experienced a positive session on Tuesday, with the DAX index closing higher. At the close of Xetra trading, the index reached 23,846 points, representing a 0.4 percent increase compared to the previous day’s closing value. Following a buoyant start, the DAX initially retreated during the morning before rebounding to record gains mid-day.
Market analyst Andreas Lipkow commented on the current trading environment, noting that participants are actively attempting to assess both the geopolitical landscape and the broader global economic trends. “Comprehending the situation is challenging in the present market conditions” Lipkow explained. He highlighted that a better-than-expected Purchasing Managers’ Index (PMI) released from China provided a boost to sentiment. Investors remain attentive for further statements from the US administration regarding trade tariffs and the upcoming quarterly earnings reports from several US companies.
Throughout the trading day, Infineon shares led the gainers on the Frankfurt Stock Exchange, while shares of Commerzbank faced downward pressure, ranking last in the performance list.
Energy markets demonstrated contrasting trends. Natural gas prices rose, with a megawatt-hour (MWh) for delivery in September costing 34 euros. This price level suggests a consumer price of at least 8 to 10 cents per kilowatt-hour (kWh), factoring in ancillary costs and taxes, should it prove sustainable. Conversely, oil prices declined; a barrel of Brent crude was trading at $68.07 at approximately 5:00 PM local time, a decrease of 69 cents or 1.0 percent from the previous day’s closing price.
The European single currency strengthened slightly during the afternoon, reaching 1.1578 US dollars, with one US dollar being worth 0.8637 euros.