Zalando and Rheinmetall to boost - Expansion of Dax portfolio
On June 3, 2025, the resilient German stock market showed a solid performace, as reflected in the DAX Performance-Index. The index closed at 23,972.52 points, up by 0.17%, or 41.85 points, from its previous close of 23,930.67. This might be attributed to a degree of investor confidence, as the intraday activity showed a recovery from an initial dip, pushing the index into positive territory.
Several notable companies experienced tough competition in the market. Airbus, Siemens Energy, and Infineon saw their shares in high demand. On the other hand, Zalando, Heidelberg Materials, and Deutsche Börse struggled towards the bottom of the price list. Despite the already high price level and the ongoing uncertainty in the trade conflict with the USA, investors cautiously held back on Tuesday.
As for economic indicators, analysts kept a keen eye on inflation data, central bank policies, and geopolitical developments, which could have an impact on future market trends. While the news of the eurozone's inflation rate falling to 1.9% might have already been factored in, it still played a role in shaping overall market sentiment.
The commodities sector, which includes energy and precious metals, experienced strong gains at the beginning of June, only to see a slight decline later. This mixed trend could have indirectly influenced investor sentiments. On a similar note, the oil price rose significantly, with a barrel of North Sea Brent crude costing $65.75 at the close of trading, a 1.7% increase compared to the previous day.
The European common currency weakened, with one euro costing $1.1379 and one dollar equivalent to €0.8788 in the afternoon trading session. Meanwhile, the gas price continued to rise, with a megawatt hour (MWh) of gas for delivery in July costing 36 euros, a 2% increase from the previous day. This surge implies a consumer price of at least eight to ten cents per kilowatt hour (kWh) including ancillary costs and taxes, given the price level remains steady.
Reflecting this overall positive trend in the DAX, most blue-chip companies listed on the Frankfurt Stock Exchange likely contributed to this modest gain. Let's see how things shake up in the days to come!
Given the positive performance of the DAX on June 3, 2025, and the recovery of several prominent companies' shares in high demand, such as Airbus, Siemens Energy, and Infineon, it's possible that the resilient finance industry and thriving business sector collectively influenced the growth in the German stock market. On the contrary, challenges persist for companies at the bottom of the price list, like Zalando, Heidelberg Materials, and Deutsche Börse, due to factors like ongoing uncertainty in trade relations with the USA.
