Dax Gains Modestly as Gold Hits Record, Lufthansa Shares Tumble
German stocks experienced a mixed day on Tuesday, with the Dax index gaining a modest 0.6% to close at 23,881 points. Meanwhile, gold prices hit a record high, climbing to $3,871.45 per ounce, as investors grapple with monetary policy and geopolitical concerns in the USA.
The day's trading was marked by several key developments. Hornbach Holding's earnings disappointed traders, leading to a significant drop of over 5% in the company's stock at the SDax index's bottom. Conversely, Puma shares surged by nearly 5% after an analyst firm, Exane BNP Paribas, reversed its negative assessment of the sportswear manufacturer's shares. However, no specific analyst's name was mentioned in the reports.
Lufthansa shares were among the biggest losers in the MDax, falling by over 7%. This was attributed to expectations of a one- to two-year transition phase with low cash inflows and potential comprehensive strikes by pilots. Auto1 shares, on the other hand, climbed by over 2% following the announcement of expanded reconditioning capacity in Italy, Austria, and the Netherlands.
Oil prices saw a dip on Tuesday, with Brent crude and US WTI light oil both falling by around 1%. This was likely due to speculation about increased supply and a possible end to the Gaza conflict. The Organization of the Petroleum Exporting Countries and its allies (Opec+) are expected to decide on a production increase of at least 137,000 barrels per day at a meeting scheduled for Sunday.
Uncertainties surrounding a potential US government shutdown also impacted trading. A shutdown could occur from Wednesday if Congress fails to reach a budget agreement.
In summary, while the Dax index closed higher on Tuesday, other indices saw mixed performance. Gold prices reached a new all-time high, driven by investor concerns in the USA. Oil prices dipped, and a potential US government shutdown adds uncertainty to the market. Key decisions on production increases by Opec+ and the outcome of budget negotiations in the USA are expected to influence markets in the coming days.
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