The market closed the week with a notable increase for the DAX index, which finished at 24,702 points at the Xetra close. This represents a gain of 2.3 percent compared to the previous day’s close.
After starting with some reticence, the DAX managed to build on its gains during the morning session. Momentum finally picked up when the DAX jumped by over 300 points following Iran’s announcement that it would suspend the blockade of the Strait of Hormuz. The waterway’s passage is expected to be possible during the truce in Lebanon. However, there is still uncertainty regarding whether shipping can resume within just ten days, particularly given the risks associated with insuring goods transported through the Strait of Hormuz. Investors are also hopeful that the ceasefire could be extended or might lead to a formal agreement.
Most DAX stocks benefited from the boost on Friday, with shares in MTU, Infineon, and Continental performing the best. In contrast, Eon, Brenntag, and RWE finished the day in the red, lagging behind the positive trend.
On commodity markets, the price of oil dropped significantly. A barrel of Brent crude oil on Friday afternoon, around 5 o’clock German time, cost $88.73 US, which was 10.7 percent lower than the previous day’s closing price.
Natural gas prices also fell noticeably. A megawatt-hour (MWh) of gas for delivery in May cost €38, representing a nine percent decrease from the previous day. If this price level remains constant, the resulting consumer price would be at least around eight to eleven cents per kilowatt-hour (kWh), including ancillary costs and taxes.
Finally, the European common currency showed a slight strengthening by Friday afternoon. The Euro cost $1.1804, meaning the dollar could be acquired for 0.8472 Euros.
