The DAX experienced a slight increase on Tuesday afternoon after a subdued start to the trading day. Around 12:30 PM, the benchmark index was measured at approximately 23,225 points, indicating a gain of 0.2 percent compared to the previous closing level. The top-performing stocks were BASF, FMC, and Brenntag, while Heidelberg Materials, Rheinmetall, and Qiagen led the market at the end of the day.
Investor sentiment remains focused on the situation concerning the conflict in Iran. Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that “after rumors about a renewed extension of the ultimatum, negotiation efforts by five friendly nations, and eight intelligence services, the mood on the stock exchange has slightly lifted”. He added that investors are now anticipating at least a medium-term ceasefire in the Middle East.
Lipkow also pointed out that “European Purchasing Managers’ Indices currently reflect uncertainty and rising energy costs”. Most available data points were slightly below the expected threshold, with the purchasing managers’ index for Italy even dropping below 50. However, the market analyst observed that “macroeconomic data currently takes a secondary role and is viewed only as footnotes. The effects of the developments and movements surrounding the Iran conflict are too strong”.
Currently, investors are showing interest in cyclical companies, partly due to the moderating crude oil prices resulting from a potential de-escalation in the Strait of Hormuz. US stock indices are also trading slightly higher pre-market, suggesting a firm opening in New York.
The European common currency was slightly stronger during the afternoon session, with one Euro priced at $1.1548, and one Dollar trading at €0.8660. Meanwhile, the price of oil decreased; the Brent crude oil for the North Sea was priced at $109.20 around German time noon, representing a loss of 57 cents, or 0.5 percent, compared to the previous day’s close.