The German stock market saw continued weakness on Thursday, with the DAX remaining in negative territory even after a sluggish start in the morning. By 12:30 PM, the leading index stood at approximately 24,065 points, a decline of 0.6 percent compared to the previous day’s closing level. Notable performers in the stock list included Infineon, Eon, and Beiersdorf, while SAP, Fresenius, and the Deutsche Bank finished lower.
Andreas Lipkow, a Chief Market Analyst at CMC Markets, commented that investor nervousness increases with every trading day, particularly given the persistent uncertainty regarding the situation in the Middle East. He pointed out that oil prices have risen again above $100, signaling strong inflationary pressures on financial markets. He noted that the impact of these price developments on overall price trends and consumer behavior will occur with a time lag. While the direct consequences cannot yet be accurately assessed, Lipkow suggests these effects are likely to become visible in both economic data and corporate earnings in the coming quarters.
According to Lipkow, the current reporting season appears generally mixed and is marked by various special factors. Meanwhile, the semiconductor industry remains a reliable safe haven, attracting investment capital. However, other sectors and industries exhibited mixed sentiment and caution. This was evident in the shares of DAX heavyweight SAP, which faced selling pressure prior to its quarterly results, reflecting a defensive approach by investors.
The analyst added that trading volume across the overall market has shown a significant decrease over the last few days, suggesting that investors are preferring to maintain high liquidity reserves while awaiting better market conditions. The primary drivers influencing daily price movements were identified as the geopolitical situation in the Middle East and the military confrontation between the United States and Iran.
Shifting to other markets, the Euro was slightly weaker on Thursday afternoon, trading at 1.1685 US dollars, meaning the dollar could be purchased for 0.8558 Euros. Meanwhile, oil prices rose noticeably. A barrel of Brent crude oil at noon Germany time cost $103.70, marking an increase of 1.8 percent from the previous trading session’s close.