The German DAX finished the week higher, ending at 24,539 points at Xetra’s close, up 0.9 % from the previous day’s close. After a solid opening, the index accrued gains amid daily fluctuations.
Christine Romar, Head of Europe at CMC Markets, noted that the announcement of former Federal Reserve governor Kevin Warsh’s nomination-and its confirmation as the new Fed Chair-initially calmed investors. “But the mood remains tense” she said. “Gold, which has long been seen as a safe haven, is moving in both directions at an unprecedented pace”.
Many traders still turned to precious metals, yet some began to question its stability after a drop of more than ten percent within 24 hours. Romar warned against a possible bubble that could spread to other markets, saying, “It’s hard to shake the feeling that a dangerous constellation is forming in the financial markets”.
The day’s mix of events-particularly Adidas’s earnings, which provided a slight, cautious lift after yesterday’s SAP shock-altered sentiment in Germany. “What’s key now is that the market takes the stability trend into the weekend so it can pick up on Monday” Romar added. “After a strong start to the new trading year and a subsequent correction of overall gains, the DAX is back on track”.
Just before the close, SAP and Adidas led the performance chart, while Volkswagen, Vonovia, and Rheinmetall appeared at the bottom of the list.
Energy prices also moved higher. Gas for February delivery ticked up to €39 per megawatt hour, a 2 % rise from the day before. This would translate into a consumer price of roughly €0.08-€0.11 per kilowatt hour (kWh) including taxes and charges, assuming the level persists. Brent crude oil rose as well, reaching $70.86 per barrel at 17:00 German time on Friday-a 15‑cent or 0.2 % increase from the prior trading day’s close. The euro weakened, trading at $1.1878, with the dollar at €0.8419 that afternoon.