The German DAX index opened marginally higher Thursday, reflecting a cautious optimism stemming from the resolution of the US government shutdown. Trading around 24,394 points by 9:30 AM, the index showed a slight increase of 0.1 percent compared to Wednesday’s closing level. Merck, Infineon and Bayer led the gains, while Eon, RWE and Siemens demonstrated weaker performance.
While the resumption of US government operations has been generally welcomed, analysts caution against assuming an immediate surge in market enthusiasm. Thomas Altmann of QC Partners acknowledged that the reopening had largely been anticipated by investors in recent trading sessions. He emphasized the crucial return of regular US economic data releases, which he described as ending a period of uncertainty and “blind flight” on Wall Street. This predictability is likely to provide a more stable foundation for future investment decisions.
However, Altmann stressed that the full economic repercussions of the shutdown itself remain largely unpriced into current market valuations. The lingering effects – potential delays in government spending, disruption to business confidence and ongoing administrative backlog – could still dampen growth in the coming months. This suggests a potential disconnect between the immediate relief of the shutdown’s end and the tangible impact on the broader economy.
The euro strengthened against the US dollar, trading at $1.1619, indicating a degree of investor confidence in the Eurozone’s economic stability. Concurrently, the price of Brent crude oil experienced a slight decline, falling to $62.63 per barrel, reflecting a cautious response to evolving global economic conditions and potentially anticipating shifts in demand. This dip signals an underlying sensitivity to potential headwinds impacting the energy sector amid the broader economic outlook, prompting a considered market assessment.