U.S. economic data bolsters strengths in Dax index
In the culmination of the trading week, the DAX index experienced a growth of 0.27 percent, rising to 23,997.48 points at Xetra's market close. Among the top performers, Fresenius shares surged by over 1 percent, followed closely by Zalando and SAP. On the contrary, Porsche shares dipped by over 1 percent, with Sartorius and Siemens Healthineers not far behind.
Market analyst Andreas Lipkow attributed the DAX's advancement to the index's disregard of the price data from both Germany and the US, which largely aligned with anticipations and signal a persistent cooling in prices. US economic data, on the other hand, presented a more optimistic outlook, with personal incomes exceeding expectations and the trade deficit shrinking beyond fear. Lipkow suggested that the US tariffs are demonstrating their impact and providing additional arguments for supporters.
Despite this positive market sentiment, there remains a sense of fatigue in European stock indices. The DAX has shown remarkable growth in the past six trading sessions without significant price consolidation. The anticipated profit-taking in May has primarily failed to materialize, indicating a potential shift in investor behavior this year.
The European common currency weakened slightly during the afternoon, with one euro costing 1.1355 US dollars and one US dollar worth 0.8807 euros. Gold prices decreased, with a troy ounce trading at 3,290 US dollars or 93.16 euros per gram in the afternoon hours. Conversely, the oil price fell, with a barrel of North Sea Brent blend costing 63.82 US dollars at 5 pm German time on Friday, marking a decrease of 33 cents or 0.5 percent from its previous day's close.
The positive momentum of European markets, including the DAX Index, was bolstered by easing global trade tensions, notably the 90-day tariff pause agreement between the US and China, which facilitated investor confidence and propelled markets towards previous high levels. Despite some inflationary pressures and regulatory uncertainties, the broad market environment remained largely supportive. The Federal Reserve maintained interest rates at their current levels, emphasizing policy patience amid concerns about stagflation, thereby further shaping market conditions.
Industry players and financial experts are keeping a close eye on the DAX's sustained growth, with Andreas Lipkow, a market analyst, attributing this advancement to the index's disregard of price data and the persistent cooling in prices across both Germany and the US. In the face of this growth, some investors might be weighing their options in business, considering the potential shift in investor behavior and the anticipated profit-taking in the coming months.
