The DAX initially started the trading day positively, but by midday, it had dipped into negative territory. By approximately 12:30 PM, the major index was calculated at around 24,875 points, reflecting a 0.2% drop compared to the previous day’s closing level.
In terms of individual stocks, Hannover Rück, Siemens Healthineers, and Daimler Truck were among the weakest performers. Conversely, shares of Henkel, Infineon, and Continental managed to gain ground.
Regarding the wider economic outlook, Andreas Lipkow, Chief Market Analyst at CMC Markets, stated that investors do not view the current developments in the Middle East as a “free pass” for the DAX to reclaim its former record highs. He noted that significant damage has occurred (“too much porcelain was smashed”), leaving the impact on the economy entirely open.
Lipkow added that while major companies have managed to absorb much of the increase in energy prices, thus avoiding passing costs directly onto consumers, this trend is expected to soften in the coming months if oil prices remain at high levels. He pointed out that some impacts are already visible, particularly in the aviation sector, suggesting that further secondary effects could follow.
In reviewing corporate health, Lipkow observed that three major DAX 40 groups-Henkel, Vonovia, and Siemens Healthineers-presented mixed quarterly results today. He suggested that this performance well reflects the overall condition of the reporting season for German corporations.
In commodity and currency markets, the European common currency strengthened slightly on Thursday afternoon. The exchange rate settled at 1 Euro to 1.1764 US dollars, meaning a dollar cost 0.8501 Euros. Gold prices gained significantly, climbing by 1.1% by the afternoon, reaching $4,743 per fine ounce, which translates to €129.62 per gram. Meanwhile, oil prices experienced a sharp decline. A barrel of Brent crude oil on the North Sea type cost $98.33 by noon local time, representing a substantial decrease of 10.5% compared to the previous day’s close.