European markets exhibited cautious trading activity Tuesday morning, with the DAX maintaining a relatively stable position. Around 9:30 AM local time, Germany’s benchmark index was calculated at approximately 24,300 points, a marginal 0.1 percent decrease from the previous day’s closing level. Leading gains were observed in Infineon, Zalando and Siemens, while Qiagen, Siemens Energy and Rheinmetall experienced the steepest declines.
Market analyst Thomas Altmann of QC Partners commented on the ongoing geopolitical situation, noting that a significant breakthrough in negotiations remains elusive. While diplomatic efforts continue, including planned bilateral and trilateral summits, investors appear to be preparing for a protracted process, with the potential for a trilateral summit anticipated in roughly three weeks.
This suggests a possible temporary shift in market focus, with traditional economic indicators poised to exert greater influence on trading activity. Altmann highlighted a growing sense of caution among investors, describing the DAX as an index characterized by “wait-and-see” behavior. Trading volume has decreased significantly, reaching the fourth-lowest level of the year, surpassed only by levels seen on US Independence Day and recent German public holidays.
This subdued activity, Altmann explains, reflects a hesitancy to commit to new positions, driven by both the desire to capitalize on a potential positive outcome from peace talks and a fear of misjudging the situation.
The Euro strengthened slightly against the US dollar, trading at 1.1675 dollars, while the dollar was valued at 0.8565 euros.
Crude oil prices also decreased, with Brent crude futures trading at 66.01 US dollars per barrel at approximately 9:00 AM German time, a decrease of 0.9 percent from the previous day’s closing price.