The German stock market closed the week with gains, driven by positive signals from the United States and influenced by broader economic factors. The DAX index reached 23,739 points at the close of Xetra trading, representing a 0.9 percent increase compared to the previous day’s closing value. This followed a positive start to the trading day, with further gains realized in the afternoon session.
Market analyst Andreas Lipkow attributed the upward trend to the release of US macroeconomic data, which exceeded expectations. Consumer spending rose by 0.6 percent compared to the previous month, a figure deemed particularly encouraging. The Personal Consumption Expenditures (PCE) core rate, a key inflation indicator, suggests a stable price trend, potentially providing the US Federal Reserve room for further interest rate cuts.
The introduction of US tariffs presents a complex and potentially destabilizing factor. Lipkow noted that this development could reignite concerns over inflation and will also be scrutinized for its potential to either stabilize or further complicate the US economy. The impending end of the quarter is additionally exerting influence on financial markets, potentially impacting US equities while creating opportunities for DAX-listed companies to maintain their current valuation levels.
Throughout the trading day, shares of Munich Re led the gainers, while those of Zalando and Infineon experienced the largest declines.
Energy prices also saw upward movement. Natural gas for delivery in October rose to 33 euros per megawatt hour (MWh), a 1 percent increase from the previous day. This translates to a potential consumer price of roughly 8 to 10 cents per kilowatt hour (kWh), inclusive of ancillary costs and taxes, should this price level persist.
The price of Brent crude oil, a key benchmark, also increased significantly, reaching $70.62 per barrel by mid-afternoon, a 1.7 percent rise compared to the previous trading day’s close.
The euro strengthened against the US dollar, trading at $1.1691, with one dollar equivalent to €0.8554.
