The DAX index demonstrated a positive trajectory on Tuesday, building upon a cautiously optimistic start to the trading day. By midday, the leading index reached approximately 24,160 points, representing a 0.4 percent increase compared to the previous day’s closing level. Commerzbank, MTU and Bayer led the gains on the ranking, with FMC, Fresenius and Siemens Energy closing out the top performers.
Market expert Andreas Lipkow commented on the prevailing investor sentiment, observing a noticeable lack of concern regarding ongoing trade dispute activities. He noted a tone of defiance among investors in Asian markets, seemingly responding to the imposition of tariffs on Japanese and South Korean products with purchases. He characterized the European market’s behaviour as lacking direction and coordination.
Despite a postponement of anticipated actions, Lipkow emphasized that the trade dispute remains an underlying concern for investors. He suggested the current approach by the US administration implies that the dispute is intended to be a long-term feature of the global economic landscape, making a swift return to previous trade arrangements unlikely. He further warned that new industries and sectors could increasingly become targets within the ongoing trade tensions.
Lipkow also highlighted a current trend of increased investor positioning in cyclical sectors, although he characterized the gains within the DAX as lacking significant momentum. Trading volume remains comparatively thin, indicating a potential constraint on further upward movement. He cautioned that the German market is increasingly showing signs of a lack of liquidity which could impede substantial gains.
The euro strengthened to $1.1735 by Tuesday midday, representing a favorable exchange rate of $0.8522 per dollar.
Conversely, the price of oil decreased. Brent crude, a benchmark grade, traded at $69.34 per barrel around midday German time, a decline of 24 cents, or 0.3 percent, compared to the previous day’s closing price.