Trading started on Tuesday with declines for the DAX, which opened at 24,164 points-a drop of 0.8% from Monday afternoon.
The market saw notable movements across sectors, with Bayer, Deutsche Börse, and GEA leading the gainers, while Infineon, Zalando, and Münchener Rück topped the list of decliners.
Providing context, Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that the arguments for market optimists are diminishing. He cited high energy prices, the mature phase reached by the semiconductor rally, and potential inflation signals from US data as key concerns. This concern was echoed by the Asian market, where investors engaged in noticeable profit-taking, particularly within previously high-performing semiconductor stocks.
In Germany, attention remains focused on the quarterly results from Münchener Rück and Bayer. While Lipkow noted that Bayer’s figures were generally well-received, the company continues to face the looming risk associated with the glyphosate crisis. Separately, the reinsurer’s reported figures were slightly below market expectations.
Lipkow suggested that today’s session would be dominated not only by the ZEW Index but, more significantly, by the US consumer prices released in the afternoon. According to him, the quarterly earnings season is stabilizing, causing macroeconomic data to regain prominence.
In other markets, the Euro was weaker on Tuesday morning, trading around 1.1749 US Dollars, while the Dollar was fetching 0.8511 Euros. Meanwhile, the price of North Sea Brent crude oil saw a significant increase, climbing to $106.50 per barrel by 9 AM German time-a 2.1% rise compared to the previous day’s close.