The German index, the Dax, remained positive through the middle of the trading day on Friday, following a strong start. The leading German index was recorded at 25,675 points at around 12:40 PM, marking a gain of 1.2% compared to the previous day’s closing level. During the midday trading, Rheinmetall, Volkswagen, and BMW led the stocks, while the end-of-day top performers included Beiersdorf, Munich Re, and Siemens.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that while high energy prices continue to pose a burden, the markets are not currently reacting as aggressively to inflation as they have recently. He cautioned, however, that the current recovery is not yet a fundamental shift in market sentiment. Instead, he suggested the markets are first correcting excessive nervousness from prior trading days, and a sustainable uptrend will only emerge if fundamental arguments prove themselves compelling again.
Looking ahead, the upcoming reporting season in the technology sector will be critical. Lipkow added that while recent figures from TSMC and ASML provided early positive signals, they are not yet sufficient to dispel doubts regarding the profitability of the enormous investments in AI. He stated that the major US hyperscalers now need to use tangible data to demonstrate that their billions in investment can yield corresponding returns.
Meanwhile, the FTSE 100 was slightly up, registering about 10,840 points. The British stock market successfully withstood recent selling pressure from international exchanges, benefiting from solid economic data that provided stability and allowed London to serve as a temporary safe haven amid turbulent market conditions. However, according to the analyst, this relative strength is now losing momentum, as new buying impulses are absent, leading the FTSE to trend predominantly sideways. Currently, defense and tobacco stocks are providing support, although investors remain cautious regarding new commitments to British shares.
In currency markets, the Euro gained ground on Friday afternoon, trading at 1.1269 US dollars, meaning the dollar was worth 0.8874 Euros.
On the commodities front, the gold price rose, with the price for a fine ounce reaching $4,183 in the afternoon, a 0.3% increase. This equated to 119.35 Euros per gram. Conversely, the oil price saw a slight decrease. At around 12 PM Central European Time, a barrel of North Sea Brent crude was priced at $105.80, marking a drop of 13 cents (0.1%) compared to the previous day’s close.
