The DAX remained in positive territory through midday on Friday, following an already strong opening. Around 12:30 PM, the leading index was recorded at approximately 25,145 points, reflecting a 0.8 percent increase from the previous day’s closing level.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that the decline in crude oil prices was helping to boost the DAX 40’s stock increase. He added that the German leading index successfully defended the psychologically significant level of 25,000 points on Friday.
Simultaneously, the released inflation data for the Eurozone was analyzed. According to a preliminary Eurostat estimate, inflation rose to 3.8 percent in September, up from 3.2 percent in August. This figure exceeded market expectations of 3.7 percent. The main driver of this increase was energy prices, which climbed by 18.8 percent, while core inflation, as expected, rose to 2.5 percent.
Lipkow explained that investors are currently closely tracking market events and placing emphasis on anticipated future price developments for energy carriers. The hope of reaching significantly lower prices for crude oil is fueling European stock markets on Friday. This trend is supported by speculation that European nations might consider reducing their state oil and diesel reserves. Furthermore, the US pre-market was positive on Friday, suggesting a strong market opening in the United States.
On the currency front, the European common currency was slightly weaker on Friday afternoon; the Euro exchanged at 1.1234 US dollars, meaning the dollar cost 0.8902 Euros.
Gold prices experienced a slight dip, with a fine ounce trading at 4,173 US dollars in the afternoon (-0.1 percent), equivalent to 119.43 Euros per gram. Meanwhile, the price of oil dropped sharply. The Brent crude from the North Sea was trading at approximately 99.70 US dollars per barrel around 12 PM German time on Friday, representing a decrease of 2.6 percent, or 261 cents, compared to the previous day’s close.
