The German stock market benchmark, the DAX, experienced a downturn at the close of trading on Friday, settling at 24,255 points. This represents a decrease of 0.8 percent compared to Thursday’s closing value.
Market analysts attributed the decline to recent news impacting the European Economic and Monetary Union, creating uncertainty among investors. Andreas Lipkow noted that the future positioning of investors within the DAX 40 will be a key area of observation, emphasizing that the index is not solely comprised of companies in the defense and construction sectors. He highlighted the challenges faced by cyclical industries which have, for several years, been overshadowed by the performance of larger, index-heavy corporations.
Throughout the trading day, the majority of DAX component stocks were in negative territory. Brenntag and Siemens Healthineers were among the biggest decliners. Countering the broader trend, Siemens Energy, MTU and RWE demonstrated gains and topped the list of rising shares.
Energy prices saw upward movement. Natural gas for delivery in August rose to €36 per megawatt hour (MWh), a 1 percent increase from the previous day. This price level suggests a potential consumer price of approximately 8 to 10 cents per kilowatt hour (kWh), inclusive of taxes and additional charges, should it prove sustainable.
Oil prices also saw a substantial increase, with Brent North Sea crude fetching $70.26 per barrel on Friday afternoon. This represents a 2.4 percent rise compared to the previous trading day’s closing value.
The Euro experienced slight depreciation against the US dollar, trading at $1.1696, with one dollar subsequently worth €0.8550.