The Dax index experienced a downturn on Thursday, closing at 24,155 points on the Xetra, marking a 0.2% decrease compared to the previous day’s close. Throughout the trading day, the index generally remained in negative territory.
Market analysts pointed to escalating investor nervousness, largely attributed to the ongoing uncertainty in the Middle East. Andreas Lipkow, Chief Market Analyst at CMC Markets, warned that the continued geopolitical instability was creating an inflationary signal, underscored by oil prices now exceeding $100 per barrel. He cautioned that the impact of these commodity price increases on consumer behavior and broad price development would take time to materialize. Furthermore, newly released European Purchasing Managers’ Index (PMI) data displayed noticeable variability and uncertainty, with German figures specifically falling below market expectations, likely influenced by elevated energy costs.
According to the analyst, the overall economic reporting season appears mixed, being influenced by numerous special factors. The semiconductor industry, in particular, continues to serve as a key safe haven and lifeline for investment capital. This sector gained traction on Thursday, with Infineon shares benefiting significantly from the earnings reports of competitors like SK Hynix and STMicro. Energy companies also saw increased interest and buying demand due to the sharp rise in both oil and gas prices.
In the Frankfurt exchange, Infineon shares led the list of Dax performers until near the close, followed by Siemens Energy and Airbus. Conversely, Qiagen and SAP concluded the day with the weakest performance.
On the commodity front, prices saw notable increases. Brent crude oil, sourced from the North Sea, rose to $102.90 per barrel by late Thursday afternoon (CET). This represented a 1.0% increase or 99 cents higher than the previous day’s settlement. Concurrently, natural gas prices also increased. Gas for May delivery cost 45 Euros per megawatt-hour (MWh), marking a two percent jump from the day before. Should the price level remain stable, this implies a consumer price point of approximately 9 to 11 cents per kilowatt-hour (kWh), inclusive of taxes and ancillary fees.
Regarding currency movements, the Euro strengthened slightly on Thursday afternoon, trading at $1.1713. Consequently, the dollar was valued at 0.8538 Euros.