As the trading week wound down, the Dax index saw a slight dip. At the close of business, the index settled at 24,129 points, a decrease of 0.1% compared to the previous day’s closing figure. The Dax had briefly dipped into negative territory during the morning session, recovered to positive readings midday, and subsequently traded close to its prior day’s levels.
Despite some uncertainty, market analyst Andreas Lipkow of CMC Markets noted that the substantial gains seen in heavyweight stock SAP likely helped the Dax hold steady above the 24,000-point mark as the week concluded. However, he emphasized that general nervousness remains high due to the ongoing instability in the Middle East, leading investors to adopt a cautious approach and avoid taking significant risks. Furthermore, oil prices above $100 per barrel pose a clear burden, especially as the issue of long-term inflation becomes increasingly apparent.
Lipkow also commented that the overall situation in the German economy, as reflected by the Ifo Business Climate Index, indicates a clear sense of restraint among managers. This cautious outlook is attributed to the effects of the Iran conflict and sharply risen energy costs. He noted that the tense situation surrounding key energy sources remains a concern and could intensify over the coming trading weeks.
Among the stocks featured during the day, SAP and Siemens Energy led the performance listings, while Bayer, Eon, MTU, and Rheinmetall were noted at the end of the index.
Varying commodity prices reinforced the market’s focus on energy. Natural gas saw an increase, with a Megawatt-hour (MWh) for May delivery costing €45, up 1% from the previous day. If this price level remains stable, it translates to a consumer price of at least nine to eleven cents per kilowatt-hour (kWh), including taxes and supplementary charges.
The price of Brent crude oil also rose, reaching $105.90 per barrel on Friday afternoon, marking a gain of 0.8% or 82 cents compared to the close of the preceding day.
In currency movements, the Euro strengthened slightly on Friday afternoon. The exchange rates were reported as one Euro costing $1.1705, and accordingly, one US Dollar purchasing 0.8543 Euros.
