The German stock market benchmark, the DAX, continued its downward trend on Friday, extending losses from a subdued opening to midday. By 12:30 PM, the index was calculated at approximately 24,190 points, representing a decline of 1.1% compared to the previous day’s closing level.
Market analyst Andreas Lipkow attributed the ongoing volatility to investor uncertainty stemming from recent unconventional diplomatic actions by the United States. He suggested these policies, referencing a “hammer-like approach” in trade matters, were creating apprehension regarding future negotiations with the European Union.
A palpable increase in nervousness was noted ahead of the weekend, with market participants appearing keen to avoid a negative start to trading on Monday. While utility stocks E.ON and RWE managed to maintain positive returns, cyclical value stocks experienced selling pressure.
Lipkow cautioned that the apparent apathy observed in previous trading days could quickly translate into larger losses for the DAX 40. He emphasized the lack of concrete information and the potential for unexpected developments, maintaining a wide range of possible outcomes remain.
The Euro also exhibited slight weakness on Friday afternoon, trading at $1.1694, which meant a US dollar was worth €0.8551.