Decision Day for DAX: Assessment of Norma share price alongside Mega-Plus and revised price forecast for Deutsche Telekom
**The DAX got a minor boost on Friday, capping off a period of subdued trading. Wall Street's reopening after Thanksgiving, accompanied by moderate gains, was seen as slightly optimistic. The DAX climbed by 0.22% to 19,468 points, extending its daily growth.
Market expert Jochen Stanzl from CMC Markets commented on the market situation, "The currency side will favor the market this year," thanks to the euro's recent weakness. A weakening home currency helps exporters, giving companies with foreign sales a leg up.
The MDax, representing medium-sized companies, fell by 0.12% to 26,195.50 points on Friday. The Eurozone benchmark index EuroStoxx 50 inched only slightly, reaching 4,761.68 points.
Following the trading pause due to Thanksgiving, the US stock markets were anticipated to open with moderate gains on Friday, but would close three hours earlier, at 7 p.m. CET, due to the extended Thanksgiving weekend in the US.
Applied Therapeutics' shares are likely to grab attention, as the US health authority FDA rejected the company's marketing application for a new drug to treat galactosemia. The stock plummeted by almost 75% in pre-market trading.
Microstrategy's stock, being a Bitcoin investor, surged 4.1% in pre-market trading. This surge is attributed to Bitcoin's recent attempt to break the 100,000 USD record, having reached 97,500 USD on Friday. Last week, the cryptocurrency hit a record high of 99,800 USD.
On Friday, the top performers in the DAX were MTU Aero Engines with a gain of 3.45%, Airbus with a gain of 0.88%, and Deutsche Bank with a gain of 0.83%.
Sartorius suffered the most losses, falling by 1.40%. It was followed by Brenntag with a decline of 1.23% and Beiersdorf with a drop of 0.77%.
The shares of Norma experienced a remarkable surge by more than 20%, due to the announced sale of their water management division. By focusing more on the general industry and automotive supply, Norma aims to strengthen its core business. The move was welcomed by investors.
With the price hike toward the end of the week, Norma's shares chart on Tradegate improved significantly. The shares climbed above the 50-day moving average, which is an indicator of the medium-term trend. However, early signs of profit-taking were observed in the morning.
Goldman Sachs raised its target price for Deutsche Telekom from 37 to 39 euros and maintained its "Buy" rating. The updated forecast accounted for recent currency developments.**
Digesting global trade policies, currency movements, and market dynamics, the DAX's performance in 2025 is associated with intricate interplays of geopolitical factors, trade policy shifts, currency fluctuations, and global market dynamics, especially involving the euro's strength or weakness and the US stock market's behavior after the Thanksgiving period.
The euro's performance relative to the US dollar and the resulting capital inflows into European assets contribute to investor enthusiasm for German equities, playing a crucial role in supporting the DAX rally.
Infrastructure and technology investments made in Germany provide nourishment to growth in key industrial and tech companies, leading to a booming DAX index.
German export sectors, particularly the automotive and industrial sectors, reap indirect benefits from shifts in trade tariffs and redirected trade flows.
The strengthening euro against the weakening US dollar facilitates capital redistribution from the US market to relatively safer or more promising markets like Germany, driving investor confidence in the DAX.
However, elevated valuations and ongoing geopolitical and economic uncertainties present potential risks for future performance.
In light of the euro's recent weakness, market expert Jochen Stanzl expects the currency side to favor the market in 2025, potentially benefiting German exporters and companies with foreign sales.
Given the intricate interplays of geopolitical factors, trade policy shifts, currency fluctuations, and global market dynamics, the DAX's performance in 2025 is anticipated to be associated with the euro's strength or weakness and the US stock market's behavior after the Thanksgiving period.
