The DAX index remained significantly negative on Tuesday, dropping sharply throughout the day despite a weak start. By approximately 12:30 PM, the leading index had fallen to around 24,110 points, marking a 1.0 percent decline from the previous day’s closing level.
In terms of individual stocks, Rheinmetall, Zalando, and Munich Re experienced declines, while Bayer, Symrise, and Merck saw gains. Market analyst Andreas Lipkow attributed the downturn to the lingering uncertainty surrounding the situation in the Iran conflict, coupled with hope that other countries might initiate further mediation efforts. He also cited the release of German consumer prices and the ZEW index. The consumer prices rose by 2.9 percent, aligning with expectations. Furthermore, the ZEW economic expectations for May came in at -10.2 points, slightly better than the estimated -19.5 points. The analyst noted that the ZEW survey, conducted amid expectations of a ceasefire between the US and Iran, needed to be viewed with relative caution.
By the afternoon of Tuesday, the European currency was weaker. The euro cost 1.1748 US dollars, meaning a dollar could be bought for 0.8512 euros.
Gold prices also showed weakness, falling to $4,701 per fine ounce by the afternoon, representing a decline of 0.7 percent. This equated to a price of 128.65 euros per gram.
In contrast, oil prices rose sharply. By noon Central European Time on Tuesday, a barrel of North Sea Brent crude oil cost $107.10, an increase of 2.8 percent compared to the previous day’s close.