The DAX slipped on Tuesday. At the close of Xetra trading the index was quoted at 24,894 points, down 0.2 % from the previous day’s close. After a relatively strong start, the DAX quickly fell into the negative territory and ultimately traded around the prior closing level.
The euro finished the afternoon stronger against the dollar: one euro was worth 1.1973 US dollars, and one US dollar could be exchanged for 0.8352 euros.
“European exporters can’t afford a euro heading toward 1.20‑dollar territory right now” commented Christine Romar, Head of Europe at CMC Markets. “Because some DAX names are exposed, the German benchmark has lagged behind Wall Street, which has picked up momentum after the Greenland shock and the lightening of concerns in Davos. Technology stocks in particular are poised to lead the winners’ list ahead of tomorrow’s key data and Thursday evening, driving the Nasdaq toward new highs” explained the analyst.
“Investors are fleeing the dollar amid political turbulence in the United States, but they don’t want to miss the continuing upside potential in US big‑tech. That upside isn’t very visible here at home, while the prospects for a stronger euro ahead of the start of the earnings season are weighing on sentiment” Romar added. “This theme will likely play a role in future outlooks”.
Before the market closed, Rheinmetall and Fresenius topped the Frankfurt stock list. Near the bottom of the table were the shares of Qiagen, Deutsche Börse, Porsche, SAP and GEA.
Meanwhile, gas prices fell: a megawatt hour (MWh) of February gas delivery cost 39 €-about 1 % lower than the day before. If that level persists, it would imply a consumer price of roughly eight to eleven cents per kilowatt hour (kWh), including ancillary charges and taxes.
At the same time, oil rose sharply: a barrel of North Sea Brent was priced at 66.69 US $ in the afternoon, about 1.7 % above the previous trading day’s close.