The DAX began trading on Wednesday with moderate gains. By 9:30 AM, the leading index registered approximately 24,410 points, marking a climb of 0.1% over the previous day’s closing level. Leading stocks included Siemens Energy, Infineon, and Brenntag, while others that performed well were Scout24, SAP, and Zalando.
Commentary from Thomas Altmann of QC Partners highlighted that interest rates remain a key topic across capital markets. He noted that the yield on ten-year German government bonds reached a new 15-year high of 3.2% yesterday. Today, the German government is auctioning off bonds maturing in 2036. Altmann stated that it will be interesting to see the yield at which these bonds are sold and how strong the demand for the offering will be. He added that the current bond issuances would continue to place a significant long-term strain on the federal budget due to high interest payments.
The focus of the day’s market action is expected to shift to the results of the US stock exchanges after the close. The market expert anticipates that Nvidia, the chip giant, will release its quarterly report for the first quarter. According to Altmann, investors and analysts are expecting the 15th consecutive quarter of profit increase. Equally important, however, will be Nvidia’s forward guidance, as the company remains one of the stocks capable of independently moving the entire market.
In commodity and currency news, the Eurozone currency was slightly weaker on Wednesday morning. A euro cost $1.1597, meaning the dollar was exchangeable for 0.8623 euros. Meanwhile, the oil price dropped, with a barrel of North Sea Brent crude costing $110.10 around 9 AM Central European Time. This represented a drop of $1.16, or 1.0%, compared to the previous day’s closing price.