The Dax index started the trading day on Wednesday with gains. By around 9:40 am, the leading index was calculated at approximately 22,590 points, a 0.8 percent increase from the previous day. Fresenius, Munich Re and Sartorius were the top performers, while Deutsche Telekom, Daimler Truck and Volkswagen closed the list.
According to Jochen Stanzl, chief market analyst at CMC Markets, the optimism of investors can be attributed to hopes of an end to the debt brake and progress on planned tax cuts in the US, as well as breakthroughs in China’s artificial intelligence sector, which could potentially benefit the country’s export and the Dax index.
However, Microsoft’s cancellation of lease agreements for AI data centers casts a shadow over the upcoming Nvidia earnings, said the market expert. “Investors, who are concerned, are likely to sell, which has been evident in recent days. Even some non-related stocks are being affected in a similar manner.” The trend of profit-taking is expected to continue, at least on the US market, following the record-breaking run. “The Hong Kong stock market has recovered and the Dax is also continuing to rise. Investors are currently being more selective in their investments.”
The European common currency was slightly weaker on Wednesday morning, with one euro exchanging for 1.0503 US dollars and one US dollar worth 0.9521 euros.
Meanwhile, the oil price increased, with a barrel of Brent crude costing around $73.30 at 9 am German time, a 28-cent or 0.4 percent increase from the previous day’s close.