European markets experienced modest gains Friday morning, with the DAX rising by approximately 0.3 percent to reach around 24,460 points as of 9:30 AM local time.
BMW, BASF and Brenntag led the gainers, with Brenntag’s announcement of acquiring assets from a US-based pipeline specialist contributing to positive momentum. Conversely, Commerzbank and Rheinmetall shares saw declines. Analysts cite recent internal restructuring within Rheinmetall and forthcoming discussions between US President Donald Trump and Russian President Vladimir Putin regarding a potential Ukrainian ceasefire as contributing factors.
Market analyst Thomas Altmann of QC Partners noted increased investor focus on the meeting in Alaska, stating that while pre-meeting market gains have been observed, predictions for a swift resolution remain cautious. Polymarket, a platform for prediction markets, currently assesses the probability of a ceasefire before October at 21 percent, rising to 66 percent within the next year.
Altmann also highlighted an unusual aspect of this month’s options expiration, noting the DAX is shedding its four largest hedging positions today, representing 90,000 contracts – approximately 13 percent of all outstanding DAX put options. Overall, the DAX is losing roughly 20 percent of its existing hedging positions.
Concerns continue to surround the Chinese real estate market, with existing home prices falling for the 27th consecutive month in July and new construction prices declining for the 26th month. Analysts characterize the situation as a significant weight on the Chinese economy.
In currency markets, the Euro strengthened Friday morning, trading at 1.1677 US dollars, while the US dollar was valued at 0.8564 Euros.
