The DAX opened positively on Wednesday morning. By 9:30 a.m., the leading index was calculated at around 24,700 points, marking a 1.2 percent gain over the previous day’s closing level.
According to Andreas Lipkow, a chief market analyst at CMC Markets, the index is picking up momentum after successfully defending the 24,000-point level, suggesting a strong start for the day.
Positive reactions from US news-specifically the prospect of a potential agreement between the US and Iran-are fueling investor enthusiasm. US President Trump stated that the Strait of Hormuz has reopened, although the sea blockade against Iran is expected to remain in place. This news led to a dip in global energy markets. Further boosting excitement were the earnings reports from AMD, a competitor of Nvidia. AMD’s stock outperformed even the most optimistic expectations, surging more than 15 percent in after-hours trading.
These developments were echoed in Asian markets. Although Japan’s exchanges were closed for public holidays, the markets in China and South Korea closed higher. South Korea’s KOSPI index rose to new record highs, driven by major stocks like Samsung Electronics and SK Hynix.
Lipkow noted that the DAX is particularly expected to benefit today from improved outlooks regarding potentially lower energy costs. High oil prices, currently above $100 per barrel, have posed significant operational challenges for many German industries, and failure to see a rapid decline could signal a negative economic development in Germany.
The focus remains heavily on the ongoing earnings season. Companies such as Zalando, Infineon, and Continental, along with various mid-tier firms, released their quarterly results today. Investors’ primary attention, however, seems to be focused on Infineon, as the company’s stock is influenced not only by its own results but also by the performance of its US competitor, AMD.
The day’s agenda remains dynamic, incorporating European Purchasing Managers’ Indices, Eurozone producer prices, and crucial US ADP data.
In currency markets, the Euro was stronger on Wednesday morning, trading at $1.1728 per Euro, meaning the Dollar cost 0.8527 Euros.
The price of gold demonstrated significant increases, rising by 2.3 percent in the morning, reaching $4,662 per fine ounce, equivalent to 127.79 Euros per gram.
Meanwhile, the oil price dropped sharply. The Brent crude oil type traded at $108.40 per barrel around 9:00 a.m. German time, representing a decrease of 1,3 percent (145 cents) compared to the previous day’s close.