Frankfurt's Benchmark Stages a Dramatic Reversal, Closing Above 24,000 on ECB Calm and Oil Retreat

German index erases early losses to close 1.41% higher at 24,292, driven by ECB rate hold, falling Brent crude, and strong earnings from DHL and Aixtron.

The DAX delivered a textbook session of two halves on Thursday, erasing early losses to finish decisively above the psychologically important 24,000 threshold. After a morning dominated by geopolitical jitters and disappointing economic data, a late-afternoon pivot powered the index to a 1.41 percent gain, settling at 24,292 points.

The turnaround began at 14:15 Frankfurt time, when the European Central Bank left its deposit rate unchanged at 2.0 percent — a widely anticipated decision that nonetheless provided a shot of confidence. The real catalyst, however, came from the commodity markets. Brent crude, which had earlier spiked on fresh tensions in the Strait of Hormuz, tumbled from multi-year highs to briefly trade at $114 per barrel. That slide offered immediate relief to investors who had been bracing for a renewed inflation shock.

The morning's gloom had been thick. Germany's private sector unexpectedly contracted, with the purchasing managers' index slipping below the expansion threshold for the first time in nearly a year. That data, combined with a surge in oil prices triggered by reports of a blockade in the Strait of Hormuz and the UAE's departure from OPEC, sent the DAX sliding below 24,000 points. At its worst, the index tested support near 23,800, with traders eyeing the 23,750 level as a potential trigger for further selling.

Even a modest uptick in eurozone inflation to 3.0 percent failed to derail the recovery. The market chose to focus on the ECB's steady hand rather than the slightly hotter price data.

The earnings calendar provided its own drama. DHL Group stormed to the top of the DAX leaderboard, surging 7.5 percent after reporting an operating profit of €1.48 billion — eight percent above analyst expectations — driven by unexpectedly robust express delivery volumes. Aixtron added 5.1 percent despite posting an operating loss for the first quarter, as a surge in orders to €171 million prompted the company to raise its full-year guidance. Brenntag climbed 4.0 percent after UBS upgraded the stock to "Neutral" with a €60 price target, while BASF edged up 1.3 percent on the back of special payments from the Wintershall deal that lifted net profit to €927 million.

The morning session had told a different story. Infineon gained 5.49 percent, riding the coattails of a strong Qualcomm earnings report from the US, while Scout24 advanced 6.67 percent on positive analyst commentary. But the insurance sector dragged, with Hannover Rück and Münchener Rück both sliding more than three percent amid sector-wide weakness. Siemens Healthineers dropped 3.72 percent, the worst performer in the index.

Technically, the DAX has reclaimed its 50-day moving average, reinforcing the short-term uptrend. The relative strength index sits at roughly 46, suggesting the market is neither overbought nor oversold — a neutral position that leaves room for further gains. The volatility index VDAX-NEW rose about two percent, indicating that institutional investors are hedging against potential policy surprises.

The focus now shifts to next week's earnings calendar, with Infineon, BMW, and Rheinmetall all due to report. The US labor market report will also command attention, offering fresh clues about the Federal Reserve's rate path. For now, Frankfurt has demonstrated its resilience, turning a day of geopolitical and economic headwinds into a confident push above 24,000.