The Deutscher Aktienindex (DAX) experienced a continued decline on Friday, following a weak start to the trading day. By midday, the benchmark index was calculated at approximately 23,685 points, representing a drop of 1.6 percent from Thursday’s closing level.
Shares of Daimler Truck, Sartorius and Siemens Energy were among the hardest hit by the downward trend. In contrast, Bayer led the list of gainers, buoyed by an upward revision of its full-year revenue and earnings forecasts, attributable to strong performance within its pharmaceutical business segment.
Market analyst Andreas Lipkow attributed the selling pressure to the announcement of additional tariffs targeting countries like Switzerland. “Many investors are opting to take partial profits before the weekend” he noted, suggesting a potential escalation of trade tensions.
Recent trading periods have demonstrated the volatility associated with weekend news and unforeseen events. The current fragile truce between the European Union and the United States in their trade dispute could easily unravel.
“Geopolitical risks are currently smoldering in numerous locations, making the potential impact of a wider global economic crisis difficult to assess” Lipkow continued. Consequently, investors are strategically divesting from cyclical industries and prioritizing defensive stocks, exemplified by the positive performance of companies like Bayer, Eon and banking sector equities.
The Euro weakened slightly on Friday afternoon, trading at $1.1408, with the dollar fetching €0.8766.
