Dax initiates transactions yielding modest returns

In the world of finance, the German stock market, or Dax, saw a positive trend on Tuesday, with Deutsche Post leading the pack among Dax stocks. According to market analyst Thomas Altmann from QC Partners, this rally could be attributed to the hope for a trade deal between the US and Switzerland.

The Dax leading index had a 0.6 percent increase compared to the previous day, with most Dax stocks rising at the start of trading. However, not all companies fared well, as FMC, Continental, and Commerzbank, among others, experienced price losses.

The European common currency was somewhat weaker on Tuesday morning, with one euro costing 1.1560 US dollars. Conversely, one dollar was traded at 0.8651 euros. The oil price fell on Tuesday morning, with a barrel of the North Sea Brent blend trading at $68.48, down 0.4 percent from the previous trading day.

Thomas Altmann addressed the recent development of volatility, stating that with yesterday's recovery, much volatility expectation has gone out of the market. He also mentioned that new interest rate expectations are boosting the markets, as the probability of a Fed rate cut in September is now seen at 93 percent on the exchanges.

However, Altmann emphasized the importance of follow-up buyers in the market for further increases in the Dax, as well as the need for long-term investors to ensure a continued Dax increase. Without long-term investors, the Dax recovery could end quickly, he stated.

The VIX, which measures the expected future fluctuations of the S&P 500, had its largest daily increase since April on Friday, but on the same day, there was the largest daily decrease since April in the VIX, according to Altmann. He also highlighted the significance of the recent development in the US-Swiss trade talks and new interest rate expectations in shaping the market's trajectory.

As the day progressed, the Dax opened with slight gains, with around 9:30 AM, the Dax leading index was at around 23,900 points. Infineon and Porsche also experienced gains, contributing to the overall positive trend of the Dax.

In conclusion, while the Dax saw a positive day with Deutsche Post leading the gains, the market's trajectory remains influenced by factors such as trade deals, interest rate expectations, and the presence of long-term investors.