The German market index, Dax, opened positively on Friday morning. Around 9:30 a.m., the leading index was calculated at approximately 26,500 points, representing a 0.5 percent gain over the previous day’s closing level.
According to Andreas Lipkow, Head Market Analyst at CMC Markets, the Dax still has the potential to increase further at the start of the week’s last trading day, aiming to challenge the 26,500 mark. He noted that while positive indicators from the US and Asia remain, the short-term upward trends are starting to lose some momentum.
Lipkow pointed out that some investors are taking profits, particularly in the semiconductor sector. This move, he explained, does not fundamentally change the market sentiment but merely indicates that the momentum has been intense. He stressed that the overarching trend remains intact, suggesting investors must now strategically select their investments, as some sectors may be exhausted from the recent rapid ascent and unable to keep pace with the high tempo.
Regarding global economic factors, consumer prices in the Tokyo area rose only within expected ranges, somewhat easing inflation concerns. Upcoming events will keep market interest high, including the Chicago Purchasing Managers’ Index from the US and, as the week’s finale, statements from Fed Chief Kevin Warsh at the Jackson Hole Symposium.
Technically, Lipkow stated that the light hurdle for the Dax currently lies at 26,500 points. Clearing this level could lead to a new all-time high for the German leading index, which might be achieved before the weekend.
In other market movements, the European common currency was slightly weaker on Friday morning; the euro cost 1.1643 US dollars, and the dollar fetched 0.8589 euros.
Meanwhile, the price of gold saw a slight increase, rising to $4,608 per fine ounce in the morning, up 0.1 percent. This equated to a price of 127.24 euros per gram. Conversely, oil prices fell. At around 9 a.m. German time, a barrel of North Sea Brent crude was trading at $89.17, which was 0.6 percent or 53 cents less than the close of the previous trading day.
