The DAX displayed indecisiveness throughout the day on Friday, maintaining a subdued start until noon. By approximately 12:30 PM, the leading index was trading at about 25,130 points, which represented a gain of 0.2 percent compared to the previous day’s closing level.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented on the market sentiment, stating that investors in Frankfurt remained positive heading into the weekend, but were noticeably reserved. He added that the likelihood of any unexpected changes in the Iranian situation-even following the extension of the trade pause-was too high, leading to a cautious wait from market participants.
Lipkow highlighted the impact of corporate earnings, specifically noting that Dell’s quarterly results revealed the immense potential of the AI revolution. This potential is not limited to established high-flyers like Nvidia & Co., but also benefits traditional hardware manufacturers. He observed that Dell’s robust order intake demonstrates the dynamic movement within this often-ignored sector, signaling the beginning of the third phase of the AI revolution, which is set to expand into various other industries and sectors of the hardware market.
As for specific trading focus within the DAX, Lipkow noted that investors were paying close attention to shares in Airbus, Zalando, and MTU Aero. Furthermore, cyclical automotive stocks and chemical companies were sought after. He lamented that Europe currently lacks the necessary technology-focused stocks required to capture the level of enthusiasm seen from both Asia and Wall Street.
In other financial markets, the Euro weakened slightly on Friday afternoon, with one Euro trading at $1.1643, meaning the Dollar was priced at €0.8589.
Gold prices fared better, gaining 0.8 percent in the afternoon session, leading to a price of $4,531 per fine ounce, equivalent to €125.11 per gram. Conversely, oil prices dropped significantly. The price of a barrel of North Sea Brent crude fell to $92.21 during the Friday afternoon trading period (around 12 AM German time), marking a decline of 1.6 percent or 150 cents compared to the previous trading day’s close.
