The German stock market concluded the week on a positive note, with the DAX index gaining traction throughout the trading day. At the close of Xetra trading, the index stood at 23,739 points, representing a 0.9% increase compared to the previous day’s closing value. Initial gains in the morning were further extended in the afternoon.
Market analyst Andreas Lipkow attributed the upward trend to the release of US macroeconomic data, which surpassed expectations. Consumer spending increased by 0.6% compared to the previous month, exceeding anticipated figures. The Personal Consumption Expenditures (PCE) core rate suggests a stable inflation trend, potentially providing the US Federal Reserve room for further interest rate reductions.
Beyond domestic economic indicators, the re-emergence of US tariffs is adding another layer of complexity. Lipkow suggests this factor could both fuel inflation concerns and potentially influence the ongoing stability of the US economy. Furthermore, the approaching quarter-end is anticipated to exert pressure on US equities, potentially benefiting DAX-listed companies and allowing the DAX to maintain its current level.
Throughout the trading session, shares of Munich Re led the gainers’ list, while those of Zalando and Infineon experienced declines.
In the energy sector, gas prices rose, with a megawatt-hour (MWh) for delivery in October costing 33 euros, a 1% increase from the previous day. This price point implies a consumer price of approximately 8 to 10 cents per kilowatt-hour (kWh), inclusive of surcharges and taxes, should this level persist.
Oil prices also saw a significant uptick, with a barrel of Brent North Sea crude costing $70.62 around 5:00 PM German time. This represents a 1.7% increase compared to the previous trading day’s close.
The euro strengthened against the US dollar, trading at $1.1691, with a dollar equivalent to €0.8554.