The DAX benchmark of the Frankfurt bourse edged lower on Tuesday as markets wait for the onset of the earnings season. Market sentiment remains cautious ahead of interest rate decisions by the Federal Reserve and ECB next week. Less-than-expected GDP readings from China also swayed sentiment for the oil and metals stocks.
The forty-scrip DAX index is currently trading at 16,059.55, having shed 9 points or 0.06 percent on an overnight basis. The day’s trading has been within the range of 16,026.35 and 16,099.55.
Close to half of the scrips in the 40-scrip index are trading in the overnight positive territory.
Covestro topped with gains of close to 3.5 percent. Vonovia and Sartorius have both gained more than 2 percent. BASF, Rheinmetall, Continental, Bayer and Fresenius have all gained more than 1 percent.
Deutsche Telekom dropped more than 3 percent in the day’s trading. Siemens Healthineers and Brenntag, both declined more than 1 percent.
Hopes of the Fed pausing on its tightening cycle dragged down the U.S. dollar around 0.17 percent in the past 24 hours. Dollar Index, a measure of the U.S. dollar’s strength against a basket of 6 currencies dropped to 99.67, versus the previous close of 99.84. The Dollar’s decline and expectations of rate hikes by the ECB lifted the EUR/USD pair 0.20 percent higher to 1.1256, a fresh 17-month-high. The pair ranged between 1.1276 and 1.1228.
The ten-year bond yield has plunged 3.1 percent to 2.3770%, versus 2.453% at the previous close.
Market Analysis
DAX Hesitant As Earnings Updates Trickle In
2023-07-18 11:19:36
