The DAX continued its upward trend on Tuesday afternoon, maintaining positive momentum after a favorable start to the day. Around 12:30 p.m., the leading index was calculated at approximately 23,960 points, marking a 0.9 percent increase from the previous day’s closing level. Siemens, Scout24, and Mercedes-Benz led the gainers on the list, while Deutsche Telekom, Rheinmetall, and Hannover Rück finished among the top performers.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors are hoping for a swift resolution to the conflict in Iran, operating under the belief that “no news is good news”. Although this optimistic sentiment hasn’t yet been reflected in energy prices, it is providing a degree of positive momentum to European stock markets.
Lipkow added that the current reporting season is proving complicated. He noted that the quarterly earnings of several companies are not meeting analysts’ expectations, creating uncertainty in certain sectors. Following the impact of Goldman Sachs’ figures on banks yesterday, the quarterly results from the luxury group LVMH may not be convincing today. The French conglomerate appears to be feeling the effects of consumer spending caution in the fashion sector. In contrast, the German automotive group BMW is being supported by its earnings report. Although the car manufacturer faced a decline in sales in China, it managed to see some improvement in Germany.
The analyst concluded that while investors remain cautiously reserved for now, they see potential opportunities for a prompt improvement in the situation. He pointed out that anticipation is building on forthcoming quarterly figures, which are now filling the news vacuum surrounding developments in the Middle East.
Separately, the European currency strengthened by midday on Tuesday, with one Euro trading at $1.1795, making a dollar cost 0.8478 Euros. Meanwhile, oil prices dipped; a barrel of North Sea Brent crude cost $98.53 around noon German time, representing a decrease of 83 cents, or 0.8 percent, compared to the close of the preceding trading day.