European markets experienced a notable downturn Tuesday, with the German DAX index leading the decline. At the close of Xetra trading, the index registered at 23,329 points, a decrease of 1.8% compared to the previous day’s closing value.
The banking sector bore the brunt of the losses, with shares of Commerzbank, Deutsche Bank and Heidelberg Materials experiencing significant drops. Insurance stocks also closed in negative territory. Limited support came from a selection of chemical and technology companies which managed to maintain relatively stable performance.
Market observers suggest investors may have strategically avoided financial stocks in anticipation of the Federal Reserve’s interest rate decision scheduled for Wednesday, a meeting widely anticipated with considerable expectations. The evolving monetary policy landscape also contributed to a strengthening of the Euro and a continued rise in gold prices.
The Euro appreciated against the US Dollar, reaching $1.1844 in afternoon trading, equivalent to €0.8443 per dollar.
Gold prices edged upwards, with spot prices reaching $3,684 per fine ounce in the afternoon, an increase of 0.2%. This translates to approximately €100.01 per gram.
Crude oil prices saw a significant rise during the session. Brent crude, a benchmark for the North Sea variety, reached $68.33 per barrel around 5:00 PM German time, a jump of $0.89 or 1.3% higher than the previous trading day’s close.