The DAX demonstrated its resilience on Wednesday, effectively withstanding profit-taking. Although the trading day concluded with a marginal decline of 0.61 percent, the correction was moderate. The DAX closed at 23,498.33 points, positioning it favorably for a potential continued upward movement on Thursday and a positive end to the trading week before Friday.
Geopolitical Realignment and Middle East Outlook
From a geopolitical perspective, the Federal Republic of Germany, under the new federal government led by Chancellor Friedrich Merz, appears to be aligning more closely with the United States. President Donald Trump's approach to de-escalate tensions with Iran and bring them back to the negotiating table is garnering global respect.
Anticipation of Continued Middle East Unrest
Some analysts attribute Wednesday's slight decline in the DAX to the ongoing perception of a fragile situation in the Middle East. This could suggest that investors are preparing for further divestments. However, considering Tuesday's strong performance, typical profit-taking is not uncommon, and the primary escalation potential may have largely been absorbed by Israel's initial attack.
Rheinmetall Benefits from Increased NATO Spending
Following the NATO member states' decision to increase their defense expenditures, it comes as no surprise that Rheinmetall shares led the market on Wednesday, gaining 3.1 percent in an overall weaker market. This positive trend was followed by Heidelberg Materials, which saw a 1.8 percent rise, and Siemens Energy, with a 1.4 percent increase.
The decline in oil prices, which had fallen by 13 percent over the past two trading days, was temporarily halted on Wednesday. The situation in the Middle East continues to demand close monitoring, as the oil market will react sensitively to any developments.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.