The DAX remained in positive territory until noon on Friday, following a strong start to the trading day. As of roughly 12:30 PM, the main index was calculated at about 24,960 points, marking a 0.8% rise compared to the previous day’s closing level.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, SAP is driving the overall market towards the 25,000 point mark by the end of the week, effectively convincing those who were skeptical. While initial concerns centered on the exact impact of AI technology on operational business, the company’s cloud business continues to grow rapidly. Lipkow suggests that, similar to its US rival, ServiceNow, these technology companies may emerge as infrastructure winners from the AI hype cycle.
This positive momentum in the DAX contrasts with the latest quarterly figures from Volkswagen. The car giant is still significantly weighed down by a major restructuring process, whose costs are pressuring overall earnings alongside a steady decline in sales. However, because the reduction in profit is tied to the specific situation of the automaker, other companies in the DAX 40 may be positioned to benefit.
Looking at the broader economic picture, the overall business climate in Germany has recently brightened. This improvement was confirmed by Purchasing Managers’ Indices (PMIs) in both the services and manufacturing sectors. In July, the manufacturing sector PMI improved to 52 points, exceeding the expected 50.4, and the services sector PMI is currently in the expansion zone at 51.6, surpassing the analysts’ forecast of just 49 points.
In financial markets, the European currency strengthened slightly on Friday afternoon; the Euro traded at $1.1391, while the Dollar fetched €0.8779.
Commodity prices showed mixed movement. Gold benefited from the gains, with the price for a fine ounce reaching $4,063 in the afternoon, reflecting a 0.3% increase. This equates to €114.68 per gram. Conversely, oil prices dropped sharply. At approximately 12:00 PM Central European Time, a barrel of North Sea Brent crude cost $97.81, a decrease of 2.9% (288 cents) from the previous day’s close.
