The DAX started its trading day on Friday with subdued activity. Around 9:30 AM, the leading index was calculated at approximately 25,120 points, marking a 0.1 percent increase over the previous day’s closing level.
According to Jochen Stanzl, Chief Market Analyst at Consorsbank, investors are capitalizing on the potential for a continued ceasefire between Iran and the United States. However, he noted that dissatisfaction is growing over the lack of progress on core issues, such as the nuclear program, though the overall sentiment remains positive. Investors seem accustomed to the ups and downs of the negotiations. While a declaration of safety is still premature, there is no reason, he added, to succumb to pessimism or sell shares.
At a level exceeding 25,000 points, the DAX is approaching new highs. This record high is only about one and a half percent away. Given that several international indices have recently hit new records in succession, investors are anticipating a similar development in the DAX soon.
Stanzl also provided commentary on commodity markets. The gold price tested its 200-day moving average for the second time in two and a half years, which could temporarily benefit buyers, particularly if the support holding holds. A break of the line could signal further losses. Despite the prolonged focus on AI, inflation appears to have taken a slight backseat in the market view, though this could change quickly given current high yields.
Despite warning signs, investors are currently seeking a reason to continue increasing their stock purchases. Stanzl pointed out, however, that recent inflation data revealed a troubling picture: the inflation rate stood at 3.8 percent, nearly two percentage points above the American central bank’s target of two percent. This increase puts pressure on the new Fed Chairman, Warsh, to address the discrepancy. The successful test of the gold price, set against this backdrop of uncertainty, indicates that investors have not completely dismissed the precious metal, even following recent price declines.
In currency markets, the Euro showed some weakness on Friday morning: one Euro exchanged for 1.1642 US Dollars, meaning the Dollar was trading at 0.8590 Euros.
Regarding commodities, the gold price gained, hitting $4,515 per fine ounce in the morning (a 0.4 percent increase), which equates to 124.70 Euros per gram. Meanwhile, the oil price fell; a barrel of North Sea Brent crude cost $92.86 in the early hours of Friday (German time), down by 0.9 percent or 85 cents from the previous day’s close.
