The Dax has started the trading day on a positive note on Friday morning. At around 9:30 am, the leading index was calculated at around 23,865 points, 0.7 percent above the previous day’s closing level.
According to Jochen Stanzl, Chief Market Analyst at CMC Markets, “Today’s stock market week ends with many positive news and higher stock prices. Between China and the USA, there has been a rapprochement in the trade dispute, both sides want to completely resolve the tensions in the coming weeks. The UK and the USA have already signed the deal. Geopolitically, negotiations are taking place at the diplomatic level between Russia, the USA, Europe and Ukraine.”
“This is not just any development, it is clear signals for stock buyers. The week could hardly have gone better. The Dax rally is making no prisoners. The level of the previous record high at around 23,450 points seems to the investors as a favorable entry point. If the Dax continues to set new records, the temporary setback in April will soon be forgotten.”
“Stock markets always look three to six months into the future. There, investors mainly see a higher probability that due to the lack of a recession in the USA, the earnings growth of the companies will remain high, which they have impressively demonstrated in the upcoming reporting season. Although company executives keep pointing to growth risks, they are presenting their investors with strong balance sheets at the same time.”
“Outside the epicenter of trade tensions with the USA, such as in the automotive, pharmaceutical and energy sectors, business is going very well. Some sectors are even able to completely bypass the tensions. Investors have recognized this and are taking advantage of the situation with some shifts in stocks” said Stanzl.
The European common currency, the Euro, was slightly stronger on Friday morning: One Euro cost 1.1210 US Dollars and consequently, one US Dollar was worth 0.8921 Euros.