The DAX gained significantly on Tuesday, closing the Xetra trading session at 24,044 points. This figure represents a 1.3 percent increase compared to the previous day’s close. After a positive start to trading, the DAX continued to build on its gains throughout the day.
Andreas Lipkow, Chief Market Analyst at CMC Markets, attributed the improvement to investor optimism, suggesting that the market was reacting to the principle that “no news is good news” particularly regarding the hope for an early end to the conflict in Iran. While this positive sentiment was not strongly reflected in energy prices, it provided the DAX with a renewed positive momentum during the trading session.
Lipkow noted that the start of the earnings season has been mixed. The quarterly results of several companies are causing uncertainty across various sectors. After banks were affected by Goldman Sachs’ figures on the previous day, the luxury group LVMH’s recent earnings failed to impress, as the French conglomerate appears to be feeling the impact of cautious consumer spending in the fashion sector. Regarding BMW’s quarterly results, investors are still analyzing the data. Although the figures reveal weaknesses in China, the company’s most significant sales market, they also show strength in its home German market, suggesting a potential trend reversal.
Leading the price list at Frankfurt towards the market close were shares of Siemens, Deutsche Bank, and Infineon. At the end of the list were the stocks of Brenntag, BMW, BASF, and Deutsche Telekom.
Meanwhile, natural gas prices declined. A megawatt-hour (MWh) of natural gas for May delivery cost 43 euros, which is a seven percent drop from the previous day. If this price level remains persistent, it implies a consumer price of at least around nine to eleven cents per kilowatt-hour (kWh), including ancillary costs and taxes.
Crude oil prices dropped substantially. A barrel of Brent crude oil, the North Sea grade, cost $96.35 on Tuesday afternoon around 5 PM German time. This represented a decrease of 3.0 percent, or 301 cents, compared to the previous day’s closing price.
The European common currency strengthened on Tuesday afternoon. One euro cost $1.1801, meaning the dollar was worth 0.8474 euros.