The German market started the week with a downturn, seeing the Dax index fall to 24,607 points at the Xetra close on Thursday, representing a decline of 0.5% compared to the previous day. Although the index managed to gain ground during the day, it abruptly turned negative before undergoing swings throughout the afternoon, which allowed it to recover some of the losses.
Individual stocks showed mixed performance; Merck and Zalando led the list of top performers in Frankfurt, while shares in Airbus and Commerzbank closed weakest.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, news of delivery issues concerning the A350 for Dax heavyweight Airbus slightly dampened investor disregard for broader economic risks. He pointed out that while the disruptions are primarily procedural issues within North American facilities, they nevertheless highlight general operational problems affecting many companies.
Furthermore, the analyst noted heightened profit-taking in traditional AI beneficiaries such as Infineon and Siemens Energy. He suggested that while the overall market had shown impressive momentum, a cooling period might be imminent. Given that new market impulses are not expected from major US technology corporations in the near term, some investors may be looking to realize profits before the summer months.
In commodity markets, the price of gas saw a marginal dip. A megawatt-hour (MWh) of gas delivered in June cost €49, which implies a consumer price of approximately nine to twelve cents per kilowatt-hour (kWh), including ancillary costs and taxes, should the current level persist.
In contrast, the price of oil rose sharply. A barrel of Brent crude oil, a North Sea grade, reached $107.70 on Thursday afternoon (as of 5 PM CEST), marking a 2.6% increase from the previous day’s closing price.
Finally, the European common currency was weaker on Thursday. One Euro cost $1.1588, meaning that one US dollar was equivalent to 0.8630 Euros.