The DAX gained significantly on Wednesday, closing at 24,081 points on the Xetra exchange. This represents a 5.1 percent increase compared to the previous day’s close, with the index remaining in positive territory despite a very positive start to trading.
Market analyst Andreas Lipkow, Chief Market Analyst at CMC Markets, cautioned against overinterpreting the day’s gains, noting, “In the recent past, things have often happened differently than investors expected”. He added that sometimes merely a tweet from the White House is enough to move markets.
Considering the current energy price crisis, Lipkow pointed to visible signs of slowdown in the German economy, citing business orders for February, which only increased by 0.9 percent rather than the anticipated 3.2 percent. He further suggested that producer prices in the Eurozone are likely to undergo a noticeable trend reversal in the coming weeks, noting that even the published February data already reflected a price decline.
Near the close of trading, most DAX stocks were up, with Siemens Energy, Infineon, and Siemens recording the most substantial gains. Conversely, RWE, Hannover Rück, and Deutsche Börse were the weakest performers.
Other markets saw notable fluctuations; the price of gas dropped significantly, costing 46 euros per megawatt-hour (MWh) for May delivery, a decrease of 14 percent from the previous day. This implies a consumer price of at least about nine to eleven cents per kilowatt-hour (kWh), including ancillary costs and taxes, should this level persist. Oil prices also fell sharply, with a barrel of Brent crude fetching $95.06 at mid-afternoon German time on Wednesday-a drop equivalent to 13.0 percent, or 1,421 cents, from the previous day’s closing price. Meanwhile, the European common currency strengthened by Wednesday afternoon, with the euro trading at $1.1690, making the dollar available for 0.8554 euros.