The German market index, the Dax, showed a slight uptick on Thursday afternoon after a subdued start to the trading day. Around 12:30 PM, the leading index was calculated at approximately 24,185 points, which represented a 0.5 percent increase compared to the closing level of the previous day. Leading the performance list were Zalando, SAP, and Scout24, followed by Qiagen, Merck, and Mercedes-Benz.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors in Frankfurt appeared somewhat disappointed by the recent record highs set in New York and Tokyo, noting that the positive momentum had not yet fully transferred to the Dax. Lipkow cited German concerns over high oil prices, suggesting that these worries were potentially overblown. While the ongoing earnings season presented many positive retrospective results, there were also initial warning signs, such as the impact of high energy costs being noticeable in the consumer sector.
In contrast, U.S. investors were betting on a continuation of the recent upward trend, fueled by positive quarterly figures. Lipkow stated that expectations remain high, particularly for major technology corporations. He added that this situation could lead either to further short-term gains or potentially to disappointment in the medium term. Meanwhile, the negotiation status between the U.S. and Iran remains a difficult topic for the market, although optimism regarding a successful negotiation process continues to drive the stock markets.
As for currency exchange rates, the European common currency was slightly weaker on Thursday afternoon; the Euro cost $1.1776, meaning the dollar was priced at 0.8492 Euros. Concurrently, oil prices rose; a barrel of North Sea Brent crude was priced at $96.27 around noon CET, marking a 1.4 percent increase over the previous day’s close.