The DAX market started the Friday morning with strong positive momentum. At around 9:30 a.m., the leading index was calculated at approximately 25,887 points, marking a 1.1% increase over the previous day’s closing level. Among the top performers were shares in Infineon, Siemens Energy, and Hochtief, while Deutsche Telekom, Scout 24, and Symrise recorded the biggest declines.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented on the global investor appetite, noting that interest in semiconductor stocks remains robust. He observed that the South Korean Kospi experienced surges exceeding 14% at times, and Tokyo’s Nikkei also benefited from the high demand for chip shares, adding that this development shown parts of what he describes as “crazy moves.”
Regarding monetary policy, Lipkow explained that the Bank of Japan held its key interest rates steady during its latest meeting, merely indicating that it would continue to monitor inflation developments. This mirrored the positions already taken by investors toward the US Federal Reserve and the Bank of England. In contrast, Lipkow pointed to weak economic indicators coming out of China, suggesting a potential slowdown in the economy.
He also cited the recent earnings reports from Amazon and Apple in the US, which were received similarly to the day before. Lipkow detailed that Amazon performed strongly, with its cloud business flourishing and overall revenues developing robustly. Conversely, Apple’s stock faced significant selling pressure, although its iPhone sales were good; however, its service division underperformed expectations.
Looking ahead, Lipkow believes the DAX is on track to approach its all-time high and potentially set a new record before the weekend. He stated that the 25,900-point level is closely reachable, and upcoming US data-specifically the Purchasing Managers’ Index and Consumer Sentiment-should not act as a drag on the market.
In currency markets, the Euro was somewhat weaker on Friday morning, trading at $1.1515 per euro, meaning the dollar was priced at 0.8684 euros. Meanwhile, oil prices saw a marked decline, with a barrel of North Sea Brent crude trading at $87.87 against German time around 9 a.m., representing a decrease of 1.3% or 116 cents compared to the previous day’s closure.
