Dax plans to engage in dealings with a marginally higher volume.
Fresh Take:
Kickstarting the trading day on a hopeful note, the Dax saw a subtle gain this morning, inching up by 0.7%. With the record high of 24,326 points within reach, the index is back in the race after the recent surge in US tariffs on steel and aluminum, and the prospect of punitive taxes on foreign investors in the US capital market. The Euro Stoxx 50 followed suit, gaining a measly 0.4%.
Vying for Top Dog
In the Dax pack, Infineon demonstrated a strong performance, climbing a whopping 3.7% to 35.62 euros. Conversely, the fortunes of online pharmacy Redcare took a nosedive, as their shares plummeted by 11% to 103.30 euros. Analysts at Kepler Cheuvreux downgraded the stock to "Hold". Enerxecutive SFC Energy, on the other hand, experienced a 6.1% boost, reaching 22.65 euros, thanks to a major order from Denmark.
Positive Vibes from Asia
Asia contributed a positive tailwind to the trading scene. The Nikkei 225 from Tokyo soared by 0.8%, reaching 37,747 yen. The Hang Seng from Hong Kong surged by 0.5%, hitting 23,623 points, and the Chinese blue-chip index CSI 300 saw a 0.4% rise, settling at 3,869 points.
Victory in South Korea Sparks Index Gain
In South Korea, the leading index Kospi experienced a joyful 2.7% surge, culminating at 2,771 points, following the election of Lee Jae-myung, the left-liberal candidate. This marks the index's highest level since August 2024, pushing past the conservative Kim Moon-soo. The South Korean won also strengthened against the dollar, appreciating by 0.6%.
Euro creeps up
The foreign exchange market remained steady, with the US dollar holding its ground, as measured by the dollar index. The euro tugged its way up by 0.1% to 1.1386 dollars, and the yen followed suit, inching up by 0.1% to 143.91 per dollar.
RIsky Business
The benchmark oil Brent Crude slipped by 0.3% to $65.43 per barrel. Yesterday, the price had swelled by around 2% due to concerns over wildfires curbing Canadian oil production and the expectation that Iran would rebuff the demanding US proposals regarding its nuclear program. This stance could result in continued heavy-handed US sanctions against Iranian oil, escalating the risk of a major war between Iran, the USA, and Israel. Consequently, the geopolitical risk premium has reared its head in the oil market again.
- In the midst of economic fluctuations due to tariffs and potential foreign investor taxes, the finance sector and business world continue to eye the Dax index as it inches closer to its record high of 24,326 points.
- Among the diverse range of industries showcased in the Dax, Infineon's strong performance and Enerxecutive SFC Energy's significant boost suggest a bullish trend in the technology and energy sectors of the business and finance landscape.
