The market began trading on Wednesday with slight gains. At around 9:30 AM, the leading index was calculated at approximately 24,050 points, representing a 0.1 percent increase compared to the previous day’s closing level. On the top of the price list were Deutsche Börse, Brenntag, and Scout24, while MTU, Airbus, and FMC ranked at the end.
Jochen Stanzl, Chief Market Analyst at Consorsbank, stated that the Dax has risen by a good ten percent compared to its low reached on March 23rd. He suggested that if the Strait of Hormuz gradually reopens and shipping traffic normalizes, the Dax is likely appropriately valued. He added that the current focus is on whether the price gains can be sustained. According to Stanzl, this will depend on the reporting season and how deep the growth slump caused by high energy prices was.
For context, Stanzl noted that the Dax has been range-bound for several days, trading within a two-day fluctuation of about 300 points. This movement is constrained by two different types of 200-day moving averages: the exponentially weighted 200-day line, which provides support at 23,743 points, and the simply weighted 200-day line, which sets the upper limit at 24,103 points.
In currency news, the European common currency weakened slightly on Wednesday morning, with one Euro costing 1.1787 US dollars, making a dollar available for 0.8484 Euros. Meanwhile, oil prices saw a slight increase. At approximately 9 AM German time, a barrel of North Sea Brent crude cost 94.96 US dollars, marking a gain of 17 cents, or 0.2 percent, compared to the end of the previous trading day.