The DAX opened the trading day cautiously on Friday morning. Around 9:30 AM, the lead index was recorded at approximately 25,160 points, which was 0.2 percent above the closing level from the previous day.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted a return in investor confidence in semiconductor stocks following a period of sharp sell-offs just days earlier. He pointed out that in Asia, major players such as Samsung Electronics and SK Hynix managed to gain ground, pushing the technology-heavy indices of Japan and South Korea to a positive closing for the week.
In China, Lipkow also observed a discernible shift in market perception. While Chinese stocks were less sought after in recent weeks, they are now regaining interest among various investors. Comparatively, Chinese tech stocks are currently trading with significant discounts when measured against their counterparts in Japan and South Korea.
However, these positive market trends are counterbalanced by the escalation of the conflict in Iran. As announced, Iran has commenced attacks on military bases in neighboring countries. This development means the upcoming weekend is likely to pose another significant test for the stock market. Although the United States had indicated its military actions would only last a few days or weeks, the duration depends critically on Iran’s response and broader developments in the Middle East.
Despite this risk, some diplomats suggest that “technical talks” are continuing between the warring parties. Due to this uncertainty, investors remain reserved on the stock market. Energy prices are reflecting this prudence, with Brent Crude oscillating between 72 and 78 US dollars. Lipkow concluded that because today’s market schedule is light, the DAX is expected to move within narrow trading ranges with thin volume, with geopolitical developments set to be the decisive factor before the weekend.
The European common currency performed slightly stronger on Friday morning: the euro traded at $1.1442, meaning the dollar cost 0.8740 euros.
On the commodity front, the price of gold weakened, with a fine ounce trading at $4,112 in the morning, reflecting a 0.2 percent drop. This translates to a price of 115.55 Euros per gram. Meanwhile, the oil price fell; a barrel of North Sea Brent crude cost $75.95 at 9 AM German time, which was 0.5 percent or 35 cents lower than the previous day’s close.
