The DAX index held steady on Friday, maintaining its positive start to the trading day until midday. By 12:30 pm, the calculated index stood at around 21,467 points, a 0.3 percent increase over the previous day’s close. Leading the pack of gainers were the shares of Porsche, BASF and Mercedes Benz, while MTU’s shares lagged behind.
“Investors are becoming bolder and are increasingly betting on the stocks of cyclical sectors”commented market analyst Andreas Lipkow. “As a result, BASF, Porsche, BMW and Infineon are at the top of the winners’ list, while the defensive sectors are less in demand, with Eon, RWE and Deutsche Telekom on the losing side”Lipkow added. “Analysts are becoming more optimistic about German companies, with a particular focus on the cyclical chemical, automotive and machinery sectors. Not least, the better-than-expected purchasing managers’ indices from Germany are supporting these assumptions and the overall market.”
The European common currency was stronger on Friday afternoon, with one euro costing $1.0486 and one dollar worth $0.9537 euros.
Meanwhile, the oil price rose, with a barrel of North Sea Brent crude costing $78.76 at 12 pm CET, a 47-cent or 0.6 percent increase over the previous day’s close.