At the close of the week the DAX fell sharply again. By the Xetra trading end it was 22,380 points, 2.0 % lower than the day before, meaning the German market gauge dropped 4.5 % over the course of the week.
The decline on Friday was driven by factors deeper than the recent moves in energy prices, which in turn behaved relatively modestly. Gas for April delivery had actually priced about five percent cheaper before the weekend than the day before, while oil was only about one percent more expensive.
The “hexing sabbath” – the day when many options and futures expire – also played a role. Investors with sufficient resources often try to sway prices on that day, whereas those who hold positions that expire tend to lose interest abruptly, adding to the downward pressure. The market’s reaction to the opening of U.S. trading also amplified the slide.
Looking at individual stocks shows losses across a range of sectors. The biggest fallers were software giant SAP, energy supplier E.ON, and engine manufacturer MTU Aero Engines. Meanwhile companies such as Heidelberg Materials, Brenntag, and Infineon saw gains.
On Friday afternoon the euro weakened slightly: one euro traded at 1.1556 U.S. dollars, and one U.S. dollar was worth 0.8654 euro.
