On Tuesday the DAX slipped slightly, closing at 24,988 points at the end of Xetra trading-a 0.1 % drop from the previous day’s close. The strongest performers were Symrise, Zalando and Brenntag, while the weakest were Siemens Energy, Allianz and Heidelberg Materials.
CMC Markets’ chief market analyst, Andreas Lipkow, noted that once the index drops below 25,000 points the “air feels thinner” yet it still attracts some investors looking to enter the equity market. He added that today’s session came after the DAX recovered from its low at the start of the week to 24,200 points, and that the next day’s U.S. labour‑market data would dictate whether the market consolidates.
Lipkow highlighted that cyclical sectors were in demand, with Symrise leading the winners list and supported by BASF and automotive stocks. He also mentioned that the German “worried child” of recent months, software giant SAP, is regaining positive momentum, which benefits the overall index.
The sentiment towards a potential economic upswing in Europe has eased the mood for German shares slightly. The key question remains whether a nascent recovery can sustain itself without U.S. support. “In some sectors we’re already seeing first sign of sustainable recovery. That’s supporting the DAX in these days” Lipkow said.
The euro weakened at noon on Tuesday, trading at 1.1902 USD per euro, which in turn made one US dollar worth 0.8402 euros.
Meanwhile, Brent crude fell, with a barrel of North Sea Brent priced at $68.86 at 17:00 German time-18 cents, or 0.3 %, less than the previous day’s close.