The Dax index failed to make up for its early losses by the end of the week. At the Xetra closing, the index was calculated at 22,513 points, a 0.4 percent decrease from the previous day’s close. The Dax had a weak start and its losses only widened throughout the day, despite attempts to approach the previous day’s close.
“Neither a new act from Trump’s tariff theater against the rest of the world nor a stronger-than-expected inflation rise in the US could prevent the Dax from adding another 600 points this week” commented Konstantin Oldenburger, market analyst at CMC Markets. “This maintains the pattern of the past weeks: Monday and Friday rather shaky and the middle of the week very strong and hard to hold. One should be curious to see how the markets will start the new week on Monday.”
Seasonality shows that the second half of February is “no longer green lights, but rather an unsteady and volatile trading” according to Oldenburger. “Historically, the second month of the year is not the investor’s favorite, especially not in years following a US election.”
Moreover, news related to tariffs in the coming weeks could lead to stronger setbacks on the stock market, the analyst fears. “So far, investors have been able to overlook the topic through a very good reporting season, as there is still potential for negotiations and Trump remains unpredictable, making investors nervous.”
Until just before the market close, Rheinmetall shares were at the top of the list, while Fresenius Medical Care’s papers were at the bottom.
Meanwhile, the gas price fell: a megawatt-hour of gas for delivery in March cost 51 euros, a one percent decrease from the previous day. This implies a consumer price of at least 10 to 12 cents per kilowatt-hour, including additional costs and taxes, if the price level remains so in the long term.
The oil price also fell: a barrel of North Sea Brent cost $74.78 at 5 pm German time, a 24-cent or 0.3 percent decrease from the previous day’s close.
The European common currency was stronger at the end of the week: one euro cost $1.0503 and one dollar was worth $0.9521 in euros.