The Dax made a strong start to the trading day on Friday morning. At around 9:30 am, the leading index was calculated at around 22,800 points, 1.4 percent above the previous day’s closing level.
“By successfully defending the important milestone of 22,200 points at the end of the month, the Dax has confirmed its intact upward trend” said Jochen Stanzl, chief market analyst at CMC Markets. “Only about three percent separate it from the record high. The mood for German stocks has significantly brightened in recent months. Investors hope that the first 100 days of the new federal government will be more successful for the German economy than the first 100 days of the US economy under President Donald Trump.” International investors, in particular, have shown increased interest in German companies, not least due to the announced large investments in energy, infrastructure and defense.
“Meanwhile, Meta and Microsoft are boosting the stock markets with strong quarterly figures, while Apple and Amazon are disappointing. For Apple, unfavorable currency effects and a weakening of business in China had a negative impact and the outlook for the current quarter further dampened the mood. Alone, Trump’s already active tariffs will cause additional expenses of about 900 million US dollars in the second quarter. The previously reliable margin development is wobbling and the stock price is falling.”
Amazon is also struggling with the same currency weaknesses and customs uncertainties that affected Apple, plus a more cautious consumption climate. “While the core business performed solidly in the first quarter, special effects, currency pressure and a more cautious outlook pushed the stock into negative territory after-hours.”
“However, the mood could already turn today if the announced talks with China actually take place and thereby provide the prospect of a reduction in retaliatory tariffs. The government in Beijing has signaled readiness to defuse the stalled tariff dispute. If this perspective is confirmed, it would further boost stock prices. Additionally, further positive news on trade agreements with other countries could follow in the coming days and weeks, supporting the market and forgetting the April slump” said Stanzl.
The European community currency was stronger on Friday morning: One euro cost 1.1328 US dollars and a dollar was correspondingly worth 0.8828 euros.