The German stock market opened Tuesday morning with a positive trend. By 9:30 am local time, the benchmark DAX index reached approximately 24,205 points, a 0.2 percent increase compared to the previous day’s closing level. Leading the gains were shares in Porsche, Mercedes-Benz, Volkswagen, Rheinmetall and the two reinsurance companies.
Market analyst Jochen Stanzl of CMC Markets noted the presence of bargain hunters in the DAX yesterday and indicated that investors are currently focusing on the upcoming earnings season and the inflation data scheduled for release this afternoon. He anticipates that major US banks will report strong quarterly results, but cautions that rising credit risks stemming from ongoing trade uncertainties may impact future outlooks.
Adding to the economic indicators being watched, the Center for European Economic Research (ZEW) will be publishing its interim economic forecast expectations for July. This ZEW index is considered the second most important German economic barometer.
The Euro strengthened slightly against the US Dollar, trading at 1.1675 USD, with the dollar correspondingly fetching 0.8565 EUR.
Meanwhile, oil prices experienced a decline; Brent crude was trading at $68.68 per barrel around 9 am local time, representing a decrease of 53 cents, or 0.8 percent, compared to the previous day’s closing value.