Trading on the German stock market saw a muted performance on Wednesday, following an initially positive open. The DAX index relinquished much of its early gains by midday, registering at approximately 23,365 points – a gain of 0.2 percent compared to the previous trading day.
SAP, Rheinmetall and Merck led the performance on the day, while Symrise, Mercedes-Benz and Volkswagen lagged behind.
Market analyst Andreas Lipkow attributed the movement to a renewed interest in defensive sectors and SAP shares specifically. “The titles experienced selling pressure during yesterday’s market correction and are now being picked up by bargain hunters” he noted.
The overall trading environment was characterized as quiet and restrained. Market participants are largely adopting a wait-and-see approach, anticipating the Federal Reserve’s interest rate decision scheduled for later in the day. “The data calendar is relatively sparse and the US Federal Reserve meeting represents the key event today” Lipkow added.
The Euro weakened slightly against the US dollar, trading at $1.1843, equivalent to €0.8444 per dollar.
The price of Brent crude oil also declined, with a barrel falling to $68.02, a decrease of 45 cents or 0.7 percent from the previous day’s closing value.