On Tuesday, the Dax index recorded gains, closing at 21,430 points, a 0.7% increase from the previous day’s close. Sartorius led the list of gainers, with Siemens Energy also recovering from the Monday’s market shock.
“Today was a relatively calm day after yesterday’s historic events” said Konstantin Oldenburger, a market analyst at CMC Markets. “Investors have had a chance to digest the news and are now taking a more measured approach.”
Oldenburger noted that the market’s reaction to the recent events was largely confined to the tech sector, which had experienced extreme gains in recent weeks and months. “The problem is that these stocks have become overvalued and the recent losses are a correction of sorts” he said.
The broader S&P 500 index also saw 70% of its components close in the green, but the index as a whole still ended in the red, dragged down by the weight of stocks like Nvidia and Broadcom.
Similarly, the Dax index would have seen a more significant recovery if not for the negative impact of SAP’s stock, which initially rose on positive news but then gave back its gains.
Oldenburger highlighted the importance of the Dax’s diversification, which has helped to cushion the impact of the recent market turbulence. “Value stocks, in particular, may now have a chance to shine and take the spotlight away from the ‘glamorous seven'” he said.
The euro was weaker against the US dollar on Tuesday, trading at 1.0428 dollars per euro, with the dollar worth 0.9590 euros.