The German DAX index experienced a decline on Friday, closing at 23,787 points, a 0.6% decrease from Thursday’s closing value. The index began the trading day on a weaker footing, with losses temporarily widening by midday.
Market analyst Andreas Lipkow attributed the downturn to investors positioning themselves ahead of the weekend and the upcoming trading week. He noted a prevailing sense of caution, with market participants closely monitoring developments surrounding potential tariffs. “The range of possible scenarios is very broad, making it difficult to draw definitive conclusions about the potential economic impacts for the respective regions” Lipkow stated.
According to Lipkow, current indications suggest a compromise is likely, which is expected to significantly impact the automotive sector. He cautioned that whether investors have already fully factored this possibility into pricing remains to be seen and will likely become clearer in the next trading week following concrete developments.
Throughout the trading day in Frankfurt, shares of Rheinmetall and E-On led the performance, while Siemens shares lagged behind.
In related market news, gas prices decreased, with a megawatt-hour (MWh) for delivery in August costing 33 euros, a 1% reduction from the previous day. This translates to a consumer price of at least 8 to 10 cents per kilowatt-hour (kWh) including ancillary costs and taxes should this price level prove sustainable.
Crude oil prices also dropped; a barrel of Brent North Sea crude was trading at $68.42 at approximately 5:00 PM German time, down 38 cents or 0.6% compared to the previous trading day’s close.
The European single currency saw a slight strengthening, with one euro costing $1.1781 and one US dollar valued at €0.8488.