The Dax index closed at 22,794 points on Wednesday, a 1.7% increase from the previous day’s close. Siemens Energy, Fresenius and Munich Re led the gainers, while Deutsche Telekom, Zalando and Merck were among the losers.
According to Jochen Stanzl from CMC Markets, the Dax index had overcome the 22,800 mark during the trading session, but the respect for the upcoming Nvidia numbers had not prevented the index from rising. However, the rally might need confirmation of good numbers and a better outlook from Nvidia to continue.
The Telekom stock was affected by its own success, as its strong performance in recent times led to profit-taking by investors. The company’s results, however, had been convincing and the upward trend in the Telekom stock remained intact.
The Deutsche Bank and Commerzbank stocks continued their upward trends, as investors were attracted to the banks’ cost-cutting efforts and improved earnings expectations. The banks are also seen as early indicators of an economic upswing, with the Ifo index and other indicators suggesting a recovery in Germany.
Meanwhile, the gas price fell significantly, with a megawatt-hour of gas for March delivery costing 41 euros, a seven percent decrease from the previous day and the lowest level since December. This implies a consumer price of around 10 to 12 cents per kilowatt-hour, including additional costs and taxes, if the price level remains stable. The oil price also declined, but to a lesser extent, with a barrel of Brent crude costing 72.79 US dollars, a 23-cent or 0.3% decrease from the previous day’s close.
The European common currency was slightly weaker, with one euro costing 1.0506 US dollars and one US dollar being worth 0.9518 euros.