The DAX index managed to turn positive on Thursday after a weak start, closing at 24,030 points, which was a 0.3 percent increase from the previous day’s close.
According to Andreas Lipkow of CMC Markets, investors are holding a cautious wait-and-see approach ahead of the long weekend. He pointed out that the continued rise in oil prices, driven by the situation in the Middle East, continues to weigh on consumer spending sentiment. Additionally, although increased energy costs were not yet reflected in price increases, they remain a concern for central banks and continue to be a topic of discussion on the stock exchange.
Lipkow added that the European Central Bank’s (ECB) council meeting is expected to address these issues and highlight potential risks, with the interest rate decision scheduled for 2:15 PM local time.
He contrasted the European situation with the United States, where robust economic development is curbing the likelihood of stagflation. However, Europe may already be at the beginning of this trend. The analyst noted that this scenario makes it difficult for the ECB to implement sustainable monetary or interest rate policy measures to control inflation without consequently slowing down the economy.
In terms of corporate data released on Thursday, DHL exceeded market expectations, reporting strong performance in its express shipping division. Conversely, BASF revealed the continued strain on the European economy, projecting an expected revenue decline for the first quarter. Volkswagen reported significant drops in both revenue and profit, particularly due to declining business in China and the US.
Meanwhile, the Euro strengthened on Thursday afternoon, exchanging at 1.1708 US dollars. Consequently, a US dollar could be acquired for 0.8541 Euros.
The gold price saw a considerable gain, reaching $4,637 per fine ounce in the afternoon, marking a 2 percent increase. This corresponds to a price of 127.33 Euros per gram.