The German stock market benchmark, the DAX, opened modestly on the day of German Unity, showing little change from the previous day’s close. At approximately 9:30 AM, the index was calculated at around 24,460 points, a slight increase of 0.2 percent above Thursday’s closing level.
Despite the ongoing US government shutdown, market sentiment remains buoyant. Analysts note that the S&P 500 and NASDAQ 100 both achieved new record highs on Thursday and the DAX concluded its fifth consecutive trading day in positive territory – a streak last seen in April.
However, concerns are being raised regarding valuation levels. The S&P 500 has reached a price-to-book ratio of 5.5, a figure surpassed only once in its history, which occurred in March 2000, shortly before the dot-com bubble burst.
The eagerly anticipated US jobs market data release has been postponed due to the government shutdown, impacting both investors and the Federal Reserve. This temporary absence of key economic indicators removes a potentially crucial element of market guidance. Conversely, it also eliminates the possibility of disappointing data that could trigger a market correction.
The public holiday in Germany is expected to have a limited impact on trading activity, with a significant portion of volume generated by non-German investors. Analysts point out that trading volume on this date last year remained within normal ranges.
The euro strengthened slightly on Friday morning, trading at $1.1725, with the dollar fetching €0.8529.
