The German stock market experienced a significant boost on Tuesday, with the DAX index closing notably higher. At the close of Xetra trading, the index registered at 24,217 points, marking a 1.0 percent increase compared to the previous day’s closing value. Following a positive opening, the DAX steadily built on its gains throughout the morning and maintained a strong performance until the end of the session.
Market analyst Andreas Lipkow attributed the positive performance to sustained investor confidence in equities. “The overall sentiment towards stocks remains positive among market participants” Lipkow commented. “Relatively favorable prospects across various industries are contributing to this positive outlook. While the potential for further upward movement among the DAX 40 companies appears temporarily capped, many investors are seizing the opportunity, particularly in the technology sector.
Lipkow highlighted the ongoing impact of digitalization and artificial intelligence as key drivers within the market. However, he cautioned that investors remain somewhat circumspect regarding traditionally cyclical industries. “There’s a degree of caution among market participants when it comes to classically cyclical sectors” he explained. “The tendency to bargain hunt with automotive stocks, compounded by existing tariffs, is keeping the sentiment for this sector somewhat subdued.
Throughout the day in Frankfurt, shares of Rheinmetall, MTU and Siemens Energy led the gainers, while Porsche, BASF and Deutsche Post experienced declines.
In related economic news, natural gas prices rose, with August delivery reaching €34 per megawatt-hour (MWh), a 4.0 percent increase from the previous day. This price level implies a consumer price of at least approximately 8 to 10 cents per kilowatt-hour (kWh) inclusive of ancillary costs and taxes, if it were to persist.
Crude oil prices also saw a substantial increase, with a barrel of Brent North Sea crude reaching $70.76 at approximately 5:00 PM local time, an increase of 72 cents or 1.0 percent compared to the previous trading day’s close.
The euro weakened against the US dollar, trading at $1.1539, with a dollar correspondingly valued at €0.8666.