European markets displayed muted activity Tuesday, with the leading DAX index showing minimal fluctuation throughout the session. By midday, the index stood around 23,750 points, marginally above the previous day’s closing level.
Performance within the DAX was mixed; MTU, Commerzbank and Siemens Healthineers were among the top performers, while Eon, Qiagen and Rheinmetall experienced declines.
Market analyst Andreas Lipkow attributed the cautious trading sentiment to the final day of the third quarter, noting a preference for banking and logistics stocks. He characterized the underperformers as reflecting profit-taking in the defense sector and within cyclical industries.
The looming possibility of a potential U.S. government shutdown continues to weigh on investor confidence. With entrenched positions between the two major political factions, a resolution appears unlikely, potentially leading to a prolonged and more impactful disruption.
Anticipation surrounding key economic indicators scheduled for release later Tuesday from the U.S. is also contributing to a degree of investor hesitation, resulting in thinner trading volumes and reduced volatility across European markets.
The euro strengthened slightly during Tuesday afternoon, trading at $1.1745, with a dollar fetching €0.8514.
Gold prices weakened, with a fine ounce trading at $3,804 (down 0.8%), equivalent to €104.13 per gram.
The price of Brent crude oil experienced a significant drop, reaching $67.27 per barrel by midday, a decrease of 70 cents or 1.0% compared to the previous day’s closing price.