The DAX managed a slight increase to close the week. At the close of XETRA trading, the index settled at 25,105 points, marking a gain of 0.1% compared to the previous day’s closing. Following a positive start, the DAX generally traded higher throughout the day.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that uncertainty remains a reliable element guiding European investors’ decisions in the stock market. He noted that the news surrounding the negotiations between the US and Iran remains unclear. However, he stated that it seems certain that a Memorandum of Understanding will eventually be reached, although the specifics and conditions are constantly changing, often on an almost hourly basis.
Lipkow added that this situation makes it difficult for investors to gain certainty. Especially with the impending weekend and the end of May, some investors are choosing to take profits and cash out. He also remarked that the likelihood of unexpected changes in the Iranian situation, even after the ceasefire extension, remains too high to risk.
Shifting focus to corporate performance, Lipkow discussed Dell’s quarterly figures, which demonstrate the massive potential of the AI revolution not only for established leaders like Nvidia but also for traditional hardware manufacturers. According to the analyst, Dell’s order intake has significantly increased, illustrating the dynamism within what is often considered a ‘boring’ sector. He explained that this marks the third phase of the AI revolution, spreading to other industries and categories within the hardware sector.
For the DAX, this trend translates into expected sector rotation. Lipkow pointed out that Infineon is benefiting from the “Dell euphoria wave” while the major index components SAP and Siemens are pulling the market downward. He also observed that typical defensive sectors were not on investors’ buying lists today, and the overall trading volume continues to thin out.
Near the close, the stocks of Scout 24, Zalando, and SAP led the price list, while Bayer stocks finished at the bottom.
Separately, the price of natural gas dropped. A Megawatt-hour (MWh) of gas scheduled for July delivery cost 45 euros, which is three percent less than the day before. If this pricing level remains steady, it implies a consumer cost of at least nine to eleven cents per kilowatt-hour (kWh), including ancillary charges and taxes.
