The DAX continued to build on its positive start during Friday’s trading session, expanding its gains until midday. By approximately 12:30 PM, the benchmark index was measured at around 26,340 points, marking an increase of 0.8 percent from the previous day’s closing level.
Among the leading stocks were Scout24, SAP, and Infineon. Conversely, shares in companies such as Munich Re and Daimler Truck registered losses. Recent quarterly figures do not appear to have convinced investors.
The DAX is thus approaching the record high achieved at the start of the week. According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors are once again focused on technology sector stocks. He noted that even companies that recently reported strong quarterly results remain on the investors’ purchasing lists. Furthermore, short-selling coverages ahead of the weekend may also be contributing to demand. Overall, trading volume remains relatively thin, suggesting that current price levels are fragile.
In London, the focus is also centered on the situation in the Middle East and energy prices. Rising commodity prices have allowed precious metals to gain, yet investors are showing a preference for pharmaceutical stocks. Speculations surrounding a potential merger between AstraZeneca and BMS have injected fresh enthusiasm into the entire sector at the start of the week, leading to discussions about possible combinations in financial markets. Nevertheless, overall trading remains calm and confined to narrow price ranges.
Regarding currencies, the European common currency was slightly stronger on Friday afternoon, with one euro trading at 1.1527 US dollars, and the dollar exchanging hands for 0.8675 euros.
The price of gold saw a significant boost, with a fine ounce valued at 4,308 US dollars in the afternoon (+1.6 percent), equating to 120.17 euros per gram. Meanwhile, oil prices dropped. A barrel of North Sea Brent crude cost approximately 81.96 US dollars around 12 o’clock local time on Friday afternoon, which was 0.6 percent lower-equivalent to 53 cents-than the closing price of the previous trading day.
