The DAX recorded losses as the trading week drew to a close. At the end of Xetra trading, the index settled at 24,759 points, marking a decrease of 0.8 percent compared to the previous day’s closing figures.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that hopes had been high throughout the day for the DAX to break the 25,000-point mark and enter the weekend at that level. However, this optimism was significantly dampened by recent labor market data released from the United States.
Lipkow explained that the report came in much stronger than anticipated, indicating a robust American job market. The data showed that 172,000 new jobs were created-far exceeding the expected 85,000-while the unemployment rate remains steady at 4.3 percent. This impressive data pushes away speculation of interest rate cuts in the US. Given increasing inflation risks linked to high energy prices, the US central bank is likely to take a cautious and observational approach. Consequently, indices in New York began their downward trend, dragging the DAX down in Frankfurt as well.
Despite this bearish influence, overall investor sentiment appears stable heading into the weekend. The first trading week of June ended on a relatively quiet note without major dramatic movements. Attention continues to be focused primarily on specific technology stocks within the DAX, with the exception of Infineon. Semiconductor values are currently facing difficult times following substantial gains in recent weeks. However, Lipkow added that German standard stocks have generally held up reasonably well recently, considering the complicated geopolitical environment.
In other market movements, the Euro weakened on Friday afternoon; one euro cost $1.1536, meaning a dollar was available for 0.8669 euros. The price of gold sharply decreased during the day, dropping to $4,341 per fine ounce in the afternoon (-3.1 percent), equivalent to €120.98 per gram. Oil prices also fell significantly; a North Sea Brent crude barrel cost approximately $93.80 late Friday afternoon (German time), which was 123 cents lower or 1.3 percent less than at the close of the previous trading day.
