The German market indicator, the Dax, commenced trading on Friday morning with a reserved atmosphere. By approximately 9:30 a.m., the leading index was calculated at around 24,185 points, marking a slight increase of 0.1 percent from the previous day’s closing level.
According to Thomas Altmann of QC Partners, the hope for peace remains, but reports of potentially drawn-out negotiations are causing energy prices and inflation concerns to rise again. This is evident in the re-escalation of interest rates, which, alongside high energy costs, pose a significant burden for companies. Moreover, even independent of interest rate environments, investors are critically examining whether US stock markets, with their all-time highs, have prematurely factored in the Iranian conflict.
Regarding the options expiration, Altmann noted that today’s settlement is unlikely to significantly impact price movements, as the supply due in April is among the smaller expiration dates. Although the index has the third-largest outstanding option position with a strike price of 21,450 points, this level does not currently dictate market direction due to its low basis price. The most important level for today’s expiration is certainly 24,000, where 2,629 call and 4,817 put contracts expire.
The Dax managed to close above its 200-day moving average for the first time since March 4th. Altmann suggested that it will be interesting to see how many technical models and investors will interpret this positive signal as an entry point, potentially unlocking further upward price potential.
Meanwhile, the common currency of the European Community performed slightly weaker on Friday morning; the Euro was priced at 1.1778 US dollars, meaning a dollar cost 0.8490 Euros.
The price of gold experienced a slight dip, with a fine ounce trading at $4,787 in the morning, representing a 0.1 percent decrease. This equates to a price of 130.68 Euros per gram.
Concurrently, oil prices fell. A barrel of North Sea Brent crude cost $98.59 on Friday morning around 9:00 Central European Time, which was 80 cents, or 0.8 percent, less than the close of the previous trading session.
