The German stock market benchmark, the DAX, opened the trading day on Friday with a weak performance. Around 9:30 AM, the index was calculated at approximately 23,720 points, representing a decline of 1.4 percent from the previous day’s closing level.
All DAX-listed companies began trading in the red. Shortly after the opening, shares of Bayer managed to break above this trend, acting as a single outlier.
“Today promises to be a volatile session on the Frankfurt Stock Exchange” noted Jochen Stanzl, Chief Market Analyst at CMC Markets. “It’s notable that even surprisingly strong results from Microsoft have failed to generate broad market enthusiasm. The fact that such positive news isn’t drawing investors in suggests that a peak in prices may be approaching.
Stanzl further elaborated on looming economic uncertainties, stating, “A new era for global trade is beginning next week with the implementation of tariffs under the Trump administration. It’s impossible to predict the practical impact of these unprecedented barriers. Current high valuations, particularly for US equities, are increasingly difficult to justify. If the Wall Street market loses momentum, it will likely hit the DAX significantly.
The market will be closely observing whether sustained buying interest or at least selling reluctance remains around the 23,900 point level in the DAX. Stanzl characterized this level as a “growing fragile lifeline” for investors. “It could be an uncomfortable day if this lifeline breaks. Should the DAX sustainably fall below this mark, the risk of a broader sell-off intensifies. This could then be exacerbated by automatic stop-loss orders. A downward trend in the DAX is becoming increasingly likely” he added.
The Euro strengthened slightly on Friday morning, trading at $1.1426, with one US dollar fetching €0.8752.
