The DAX saw a slight increase on Wednesday, closing at 24,067 points, marking a gain of 0.1 percent compared to the previous day’s close. Throughout the trading day, the index initially fluctuated around the previous day’s closing level and managed to hold steady in positive territory during the afternoon session.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that investors reacted favorably to US President Trump’s announcement suggesting that the Strait of Hormuz would once again be open to commercial shipping. He also noted the possibility that negotiations between the US and Iran regarding a ceasefire could continue as early as the next day.
Despite the signs of easing tensions, Lipkow stated that investors remained generally cautious and reserved. The defensive industry sectors were particular winners on the DAX day. Furthermore, investors felt bolder about stocks in the automotive sector, which can continue their resurgence following positive news from Schaeffler and Stellantis. In contrast, the banking stocks on the DAX could not sustain their positive price trend, even though the quarterly reports from Bank of America and Morgan Stanley exceeded expectations.
Overall, the analyst concluded that the ongoing reporting season suggests a positive trend based on quarterly figures, mentioning that ASML’s results were reportedly evaluated favorably, pulling the European semiconductor sector upwards. However, he cautioned that the development of inflation rates due to higher energy prices remains something to watch closely.
Among the stocks leading the price list nearing the market close were those of Zalando, Rheinmetall, SAP, and Brenntag. On the other hand, shares in Fresenius, FMC, Continental, and BASF formed the bottom of the list.
Elsewhere, the price of natural gas declined: A Megawatt-hour (MWh) of gas for delivery in May cost 41 euros, representing a four percent decrease from the previous day. If this price level remains stable, the implied consumer price would be at least around nine to eleven cents per kilowatt-hour (kWh), including ancillary costs and taxes.
The oil price, however, rose. A barrel of North Sea Brent crude cost $95.28 on Wednesday afternoon around 5 PM German time, which was 49 cents, or 0.5 percent, more than the previous day’s closing price.
The European common currency was slightly stronger on Wednesday afternoon: the euro traded at 1.1802 US dollars, meaning the dollar was valued at 0.8473 euros.