The German stock market benchmark, the DAX, experienced a significant downturn Friday, closing at 23,426 points, a decline of 2.7 percent compared to the previous day’s close. The index began the trading day on a weak footing and continued its downward trajectory throughout the session.
Market analyst Andreas Lipkow noted that a sense of panic or heightened tension has not yet emerged in European equity markets. He emphasized the need to observe the impact of US trade protectionist measures on the US economy moving forward. Lipkow also highlighted a continued investor preference for defensive stocks, while cyclical and export-oriented industries remain under pressure. There was little change in the distribution of winners and losers within the DAX 40.
Throughout the trading day, Bayer, Eon and Deutsche Börse were among the few stocks registering gains, while Daimler Truck shares performed the worst.
In related market developments, European gas prices decreased, with a megawatt-hour (MWh) for September delivery costing 34 euros, a 4 percent reduction from the previous day. This level indicates a potential consumer price of approximately 8 to 10 cents per kilowatt-hour (kWh), including taxes and fees, if sustained.
Crude oil prices also saw a substantial drop, with a barrel of Brent North Sea crude fetching $69.74 at around 5:00 PM local time, a decrease of 196 cents or 2.7 percent compared to the previous trading day’s close.
The European currency strengthened noticeably earlier in the day, with the euro trading at $1.1537 (+1.05 percent), making a dollar worth €0.8668.
