The German market index, the Dax, remained negative on Friday, continuing a trend of decline from the start of the trading day until lunchtime. By approximately 12:30 PM, the leading index was recorded at around 24,460 points, showing a drop of 0.8% compared to the closing level of the previous day.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors are adopting a very cautious and highly selective approach, remaining neutral ahead of the forthcoming weekend. He commented that attempting speculative trades is unwarranted at this moment. He added that the developing and sometimes momentary changes related to the conflict in the Middle East have made it very difficult for investors to properly and sustainably assess the situation.
This cautious mood was reflected in the extreme fluctuations observed in oil prices, which, in turn, impacted the stock markets. Lipkow pointed out that defensive sectors are currently drawing focus on the Dax, benefiting stocks such as Fresenius and Fresenius Medical Care. Meanwhile, the sustained enthusiasm in the semiconductor sector is also boosting the stock price of Infineon. He noted that Rheinmetall, currently at the bottom of the Dax 40, must contend with several negative analyst reports.
On the currency front, the European community currency found some stability on Friday afternoon, with one Euro trading at 1.1764 US dollars, and consequently, one dollar exchanged for 0.8501 Euros.
The price of gold benefited significantly. By the afternoon, a fine ounce was valued at $4,743 (+1.1%). This translates to a price of 129.62 Euros per gram.
In contrast, oil prices saw a considerable drop. A barrel of the Brent North Sea grade cost around $100.10 on Friday afternoon around German time noon. This figure represented a decrease of 1.2% compared to the closing price of the previous trading day.
