The German DAX index continued its downward trend throughout Friday morning following a weak start to the trading day. By approximately 12:30 PM, the leading index was calculated at around 24,155 points, representing a 0.6 percent decline compared to the previous day’s closing level.
Market analyst Andreas Lipkow noted that investors were increasingly focusing on automotive stocks as the week drew to a close. He described Volkswagen’s recent reporting, despite a second-quarter earnings decline, as having a “soothing” effect across the industry. Volkswagen shares themselves experienced a significant rebound, climbing to the top of the trading list.
Lipkow suggested a growing sentiment that the downturn within the automotive sector may be nearing its end. He highlighted that the future trajectory of this sector largely depends on the outcome of trade negotiations between the EU and the United States.
However, he cautioned that the Ifo business climate index continues to reflect a cautious mood, hindering the emergence of stronger optimism. Market participants are now keenly awaiting data releases from the United States.
The euro was slightly weaker on Friday afternoon, trading at $1.1736, with the dollar valued at €0.8521.