The DAX started trading on Friday with caution. Around 9:30 AM, the leading index was recorded at approximately 23,845 points, marking a slight gain of 0.2 percent compared to the previous day’s closing level.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that the DAX remains indecisive at the start of the week’s final trading day, especially following the agreed-upon ceasefire in the Middle East. He observed that Asia’s investors ended the day with generally positive price trends, driven by optimism regarding the continuation of US and Iranian talks aimed at achieving a ceasefire.
European markets are also showing signs of a slightly more positive opening. In Frankfurt, the DAX is continuing to tread water as investors seek clearer direction. Lipkow noted that the stock’s stable trend will depend both on the news situation in the Middle East and on the US consumer price data scheduled for release today.
The harmonized consumer prices for Germany arrived within expected ranges, showing a 2.8 percent increase. Attention is now focused on how the conflict has impacted US inflation. Furthermore, the Consumer Sentiment Index from the University of Michigan is also being closely watched. On the corporate side, the quarterly results from the technology giant TSMC are expected to bring movement to European semiconductor stocks, as their positive figures should lift the mood in that sector.
Overall, however, the Iran conflict remains the decisive factor influencing the stock market’s development. Lipkow added that until oil prices remain above $100 per barrel, no reassurance can be given, stating that the German industrial and logistics sectors, in particular, are struggling with high energy costs and could experience sustained dampening effects.
In currency markets, the European common currency was slightly weaker on Friday morning: one Euro exchanged for 1.1687 US dollars, while the Dollar bought for 0.8557 Euros. Gold prices were weaker, trading at $4,754 per fine ounce in the morning (a decrease of 0.2 percent), which equates to €130.78 per gram. Meanwhile, oil prices rose significantly; a barrel of Brent crude oil at the North Sea traded around $97.55 at 9:00 AM German time on Friday, an increase of 1.7 percent from the previous day’s close.
