The DAX slipped sharply towards the end of the week, closing at 22,301 points on the Xetra exchange-down 1.4 % from the previous day’s close. After opening near yesterday’s level, the index fell quickly and remained in negative territory for most of the session.
According to Andreas Lipkow, chief market analyst at CMC Markets, investors are heading to safe‑haven assets before the weekend and are only buying select stocks from isolated sectors. The overall market is being avoided and continues to feel the impact of high crude oil prices. Even though the intensity of Middle‑East headlines has eased slightly, skepticism and uncertainty remain steady companions in investors’ allocation choices. The pace of directional shifts in the current developments is too rapid, while the so‑called facts remain too opaque.
Lipkow added that the damage already caused by the Iran conflict is likely to have lasting effects on global economic growth, especially in Europe. Disruptions to supply chains originating in the Middle East-caused by damage to key infrastructure-cannot be repaired overnight; repair times are expected to run into months or even years. Investors are becoming increasingly aware of this reality.
In Frankfurt, the shares of BASF and Symrise topped the trading list right before the reinsurance names Hannover Re and Munich Re. In contrast, the performances of MTU, Siemens Energy, Rheinmetall, and Infineon lagged behind.
Gas prices fell: a megawatt‑hour (MWh) of gas for April delivery cost €54, three percent lower than the previous day. That level implies a consumer electricity price of roughly 10-12 cents per kilowatt‑hour (kWh), including ancillary charges and taxes, should the price stay at that level.
Oil, on the other hand, rose sharply: a barrel of Brent crude cost US$111.40 around 5 p.m. German time on Friday, up 3.1 % from the previous trading day’s close.
The euro was a little weaker in the afternoon session: one euro traded at US$1.1524, while one US dollar was equivalent to €0.8678.
