On Wednesday the DAX remained in the negative zone until midday, following an already weak start. At about 12:30 p.m. the index stood at 23,675 points, which is 1.2 % below the previous day’s closing level. Brenntag, Volkswagen and Bayer led the intraday run‑up, while Henkel, Rheinmetall and SAP lagged at the bottom.
Andreas Lipkow, chief market analyst at CMC Markets, said investors are slowly shifting from a slightly positive view of the euro‑zone’s outlook. He pointed to the situation in the Middle East, which is pushing energy prices higher and harming the global economy. “The current rise in crude‑oil prices is negatively impacting both inflation and overall economic performance across many sectors” he added. The effect is most obvious in airlines, which are hit hard by soaring jet‑fuel costs, and the ripple extends to logistics and the chemical industry.
“Uncertainty remains the biggest problem” Lipkow continued. He warned that relief measures-such as the potential liquidation of national oil reserves-are unlikely to be effective if energy supply disruptions endure. Many countries have exhausted their energy reserves in recent years and now have to accept the consequences.
Rheinmetall, a heavyweight in the DAX, offers little comfort today. The defence‑conglomerate reported solid figures, but investor expectations were still higher. “The company does indeed have a full order book, yet it must also grapple with rising costs and fully utilized capacity” Lipkow said.