The DAX turned upside‑turned into the green zone by mid‑afternoon after a steady start. At about 12:30 p.m. German time the index stood at roughly 22,725 points, a gain of 0.7 % compared with the previous trading day. The strongest performers were Rheinmetall, Zalando and Commerzbank, while BASF, Heidelberg Materials and Fresenius lagged at the bottom of the list.
CMC Markets’ chief market analyst, Andreas Lipkow, said investors were still uneasy about the situation in the Middle East, “Their thoughts swing between the fear of missing a relief rally and worries about a further escalation, keeping the DAX at its current level”. The uncertainty over how the rise in energy prices will ultimately show up in inflation remains. “BASF, Europe’s largest chemical company, announced on Monday that it needs to raise prices on discrete products and raw materials due to higher input costs. The chemicals sector is very sensitive to inflation developments, making it a good indicator” Lipkow added.
He cautioned that it is far from certain whether the DAX has already seen the lowest points of this correction. “The military confrontations are still ongoing and oil prices are staying above the $100 per barrel mark. If, despite all diplomatic efforts, the U.S. ends up deploying ground troops in Iran, the market could be shuffled again, and Europe would likely have no advantage”.
The euro was slightly stronger on Tuesday afternoon: one euro equaled $1.1465, meaning one dollar was worth €0.8722.
Meanwhile, the oil price surged: Brent crude from the North Sea fetched $115.20 per barrel at around 12:00 p.m. German time, up 2.2 % from the close of the previous trading day.