The DAX started the trading day on a cautious note but moved into positive territory by midday. At around 12:30 p.m. the index settled at roughly 24 635 points, up 0.6 percent from the previous day’s close.
Thomas Altmann of QC Partners warned that a massive sell‑off is underway in Bitcoin. “People are fleeing the crypto asset” he said, adding that those who invested with borrowed cash are being forced to put in large sums or be liquidated. Each decline triggers a cycle of margin calls, forced sales, and further price drops. Those who meet margin calls often sell assets in other classes, spreading the Bitcoin crash into the broader market.
The NASDAQ 100 volatility index hit a 30‑level yesterday, highlighting the current uncertainty among investors. Altmann compared this to the two‑year average of about 21, noting how much more nervous traders feel today and how quickly such uncertainty drives them to sell.
Government bonds are temporarily regaining their reputation as a safe haven. The extreme uncertainty has turned bonds into a less risky choice, leading to increased buying. Altmann also pointed out that expectations for US Federal Reserve policy have shifted sharply after the election of new Chair Kevin Warsh. Market odds of a rate cut surged yesterday, and a near‑immediate cut is now expected when Warsh presides over the July meeting. A few days earlier, the probability of a cut had been 40 percent lower.
The euro strengthened on Friday afternoon, trading at 1.1787 U.S. dollars per euro, meaning one dollar cost 0.8484 euros.
Gold enjoyed a robust rally, with a troy ounce priced at 4 892 U.S. dollars-a rise of 2.5 percent-equivalent to 133.44 euros per gram.
Brent crude also edged higher. The North Sea grade Brent barrel traded at about 67.58 U.S. dollars per barrel at 12:00 p.m. German time on Friday, a 3‑cent gain over the previous day’s close.