The German benchmark index, the DAX, experienced a significant downturn Friday, closing at 23,426 points – a 2.7% decrease compared to Thursday’s closing value. The downward trend began with a weak opening and continued throughout the trading day.
Despite the overall market decline, market analyst Andreas Lipkow emphasized that “no panic or tense situation is currently evident on European stock markets”. He underscored the critical need to observe the impact of evolving US trade protectionism on the American economy. “The distribution of winners and losers within the DAX 40 has remained largely unchanged. Defensive stocks are favored by investors, while cyclical and heavily export-oriented sectors continue to be avoided.
Throughout the trading session, only shares of Bayer, Eon and Deutsche Börse registered gains. Daimler Truck shares, conversely, performed the poorest among the DAX constituents.
In related market developments, natural gas prices saw a notable decrease, with a megawatt-hour (MWh) for delivery in September priced at 34 euros – a 4% reduction from the previous day. This decline suggests a potential consumer price of approximately 8 to 10 cents per kilowatt-hour (kWh), inclusive of taxes and charges, if this price level proves sustainable.
The price of Brent crude oil also experienced a sharp decrease, fetching $69.74 per barrel on Friday afternoon – a reduction of 196 cents, or 2.7%, from the previous trading day’s close.
The European currency, the euro, strengthened considerably on Friday afternoon, reaching $1.1537 (+1.05%), while a U.S. dollar was valued at €0.8668.