On Wednesday, the Dax experienced an increase. At the Xetra trading close, the index was calculated at 22,497 points, representing a 0.3 percent gain compared to the previous day’s closing. Following a positive start, the Dax turned negative in the early afternoon. However, losses were gradually reduced thereafter.
Jochen Stanzl, Chief Market Analyst at CMC Markets, commented, “The Dax barely reacts to the unexpectedly weak GDP data from the US with a shrug. In Frankfurt, the focus on the economic situation in the US appears to be more realistic than on Wall Street. Despite the data being negative as expected, stock prices in New York are falling, which seems surprising. Apparently, some investors followed Trump’s optimism and believed that things wouldn’t be as bad as anticipated.”
Stanzl found the recent GDP data to be both informative and puzzling. “They illustrate the significant turbulence caused by Trump’s customs announcements on the US economy. Importers were forced to increase their stockpiles to avoid future tariffs” the analyst explained. “As a result, the goods trade deficit reached a record high of 162 billion dollars – an anomaly that is unlikely to recur with the implementation of tariffs in this quarter. Although it is unclear to what extent the tariffs will dampen growth, there is a prevailing view that the development will be downward rather than upward.”
The US stock market, which has been primarily driven by retail investors in recent days, reacted to this perceived recessionary wake-up call with losses, according to Stanzl. “The GDP numbers, amidst an improvement, were an unwanted reminder that the US economy must pay the price for increased customs uncertainty.”
In Frankfurt, Deutsche Börse shares were at the top of the Dax list shortly before the trading close, while Zalando shares were at the bottom.
Meanwhile, the gas price increased: A June-delivered MWh of gas cost 32 euros, representing a 1 percent increase from the previous day. This implies a consumer price of at least approximately eight to ten cents per kilowatt-hour (kWh) including ancillary costs and taxes, should the price level remain constant.
In contrast, the oil price fell significantly: A barrel of Brent crude from the North Sea was trading at approximately 63.48 US dollars on Wednesday afternoon, which was 77 cents or 1.2 percent lower than the closing price of the previous trading day.
The European common currency was weaker on Wednesday afternoon: One euro was worth 1.1347 US dollars, while one dollar was equivalent to 0.8813 euros.