DAX Lags at Week’s Close, Oil and Gas Prices Rise
The DAX index closed the week with a loss, ending at 20,221 points, a 0.5% decline from the previous day’s close. The index started the day cautiously, but gained momentum by midday before turning negative in the afternoon.
“The strong US job market report has raised doubts on Wall Street about whether the US Federal Reserve can indeed cut interest rates this year and will” said Konstantin Oldenburger, a market analyst at CMC Markets. “After the Fed announced in mid-December that it would rather wait and see, the 256,000 new jobs were a confirmation of this trend. The probability of interest rates staying at the current level until June has increased from 27% to 43%.”
The report on Friday showed the US labor market remains very robust, which, combined with the possibility of higher tariffs from the future US President Trump, “speaks for a longer phase of stagnant or rising interest rates” Oldenburger added. “The Fed can afford to be calm in 2025 for now.”
Mercedes-Benz shares led the stock market in Frankfurt, while Siemens Energy, E-On, and Zalando shares closed at the bottom.
Meanwhile, the gas price rose: one megawatt-hour (MWh) of gas for delivery in February cost 50 euros, a 3% increase from the previous day. This implies a consumer price of at least nine to eleven cents per kilowatt-hour (kWh) including additional costs and taxes, if the price level remains constant.
Oil prices surged: a barrel of North Sea Brent oil cost $78.76 at 5 pm German time on Friday, a 2.4% increase from the previous day’s close.
The European common currency was weaker: one euro cost $1.0235, and one dollar was worth $0.9770.