The German Dax Index recorded gains on Tuesday, closing at 23,641 points at the Xetra market close, a 1.6 percent increase from the previous day’s close.
Market analysts attribute the improved sentiment to the recent ceasefire between Iran and Israel, which has led to a significant easing of concerns among investors, particularly with regards to the decline in oil prices. “Investors are much more relaxed now, especially in light of the falling oil prices” said Andreas Lipkow, a market analyst.
The demand for shares in companies such as Heidelberg Materials, Siemens Energy and Sartorius was in line with this trend. However, Lipkow cautioned that it is still too early to predict a green light for the stock market.
The ongoing conflict in the Middle East and the upcoming US tariffs issue, set to resume in early July, are still major concerns, according to Lipkow. The Case Shiller House Price Index and US retail sales data, due to be released on Tuesday, will provide insight into the economic situation in the United States.
The euro was stronger against the US dollar on Tuesday, with one euro equivalent to 1.1621 US dollars and one US dollar to 0.8605 euros. The gold price, on the other hand, saw a significant decline, with one ounce of fine gold selling for 3,317 US dollars, or 91.76 euros per gram, a 1.6 percent drop.
Oil prices also plummeted, with a barrel of Brent crude selling for 67.96 US dollars, a 4.9 percent decrease from the previous day’s close.