The German market index, the Dax, remained in negative territory throughout the day on Friday, maintaining a downward trend even after a weak opening. By 12:30 p.m., the benchmark index was reported at approximately 25,900 points, marking a decline of 0.5 percent compared to the previous closing level.
While several stocks like Siemens Energy, Infineon, and High Tief fell to the bottom of the market rankings, others managed to defy this trend, including Bayer, Beiersdorf, and Henkel.
Andreas Lipkow, Head Market Analyst at CMC Markets, noted that investors were being confronted with market realities by the end of the week. He pointed to disappointing quarterly results from Intel and persistent large-scale investment plans by Amazon as factors that renewed doubts about the profitability of the AI boom. Furthermore, Amazon’s consumer business performance failed to meet expectations, putting pressure on two key drivers of the stock markets: technological investment and consumer purchasing power.
Lipkow also highlighted concerns within the German automotive industry. He mentioned that the massive revenue drops suffered by Audi illustrate the profound transformation sweeping the entire sector. Specifically, the Volkswagen Group faces a significant challenge adapting to evolving customer demands, new competitors, and stringent investment requirements. Automotive manufacturers are being forced to fundamentally overhaul their business models while facing pressure on the profitability of their traditional operations.
In contrast, German economic data provided a positive counterpoint. The economy grew by 0.2 percent in the third quarter, surpassing the expectation of only 0.1 percent. Lipkow described this as a notable sign of resilience given the high energy prices. However, he cautioned that a marginally better quarter was insufficient to declare a sustainable economic recovery, noting that while the economy is stabilizing, Germany is still far from a robust upturn.
Regarding global markets, the European currency strengthened slightly on Friday afternoon, trading at 1.1198 US dollars per Euro, meaning a dollar purchased for 0.8930 Euros. Meanwhile, the gold price fell significantly, settling at 3,972 US dollars per fine ounce in the afternoon, a 1.3 percent decrease. This equates to a price of 114.05 Euros per gram. Conversely, the oil price saw a sharp increase; the price for a North Sea Brent barrel was reported at 117.80 US dollars around noon German time on Friday, representing a 2.5 percent rise from the previous day’s closing.
