Prices of gas and oil witness a decline, resulting in a minor setback for Dax, while the Euro gains strength.
On Tuesday, August 19, 2025, the DAX experienced a significant shift, gaining 0.45%, reaching a three-week high at 24,423 points[1]. This reversed a previous 0.18% loss from Monday. The rise was primarily driven by optimism over potential peace talks between Russia and Ukraine, following meetings involving Ukrainian President Zelenskyy, EU leaders, and former President Trump, who began arranging a trilateral meeting with Putin and Zelenskyy[1][2].
However, this upside was somewhat limited by investor concerns over the Federal Reserve's (Fed) policy path, particularly ahead of the Jackson Hole Symposium where Fed Chair Powell was expected to provide guidance on monetary policy tightening[1].
The movement towards the 24,000-point mark has been influenced by several factors. These include geopolitical developments like the Russia-Ukraine conflict and potential peace deals, which enhance market risk sentiment and support cyclical stocks[1][2]. On the other hand, Federal Reserve policy uncertainty can potentially weigh on investor confidence and market momentum[1].
Sector-specific influences have also played a role. For instance, defense and energy stocks were weaker amid expectations of reduced military spending and falling oil prices, which affect overall index sectors such as Siemens Energy and Rheinmetall[1]. Technical dynamics and profit-taking around resistance levels such as 24,400–24,500 can cause short-term fluctuations[2].
Notably, the DAX declined on Wednesday, August 20, 2025, falling 0.60% to 24,277 points, marking the largest one-day drop since early August, likely reflecting some profit-taking and ongoing macro uncertainties[4].
Meanwhile, the European common currency strengthened on Tuesday afternoon. One euro was worth $1.1665, and one dollar was worth €0.8573. The bottom of the price list was formed by the shares of SAP, Deutsche Börse, and reinsurers Hannover Rück and Munich Re. After a positive start, the DAX turned negative before approaching the previous day's close in the afternoon[3].
Market analyst Andreas Lipkow commented that the 24,000-point mark has repeatedly acted as a magnet for the DAX[5]. Investors are seeking clarity on the further course of the Ukraine war[5]. A megawatt hour (MWh) of gas for delivery in September cost 32 euros, down two percent from the previous day[3]. However, no new facts were present in this paragraph that are not already covered by the earlier bullet points.
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