The German DAX index continued to drop on Friday after already beginning the trading day with weakness. By around 12:30 p.m., the leading index had been calculated at approximately 24,065 points, marking a 1.6 percent decline from the previous day’s closing level.
The general downturn was evident across the stock board. Stocks such as Heidelberg Materials, Infineon, and Siemens Energy were positioned at the lower end of the price list. Only a handful of companies managed to defy the prevailing negative trend, including SAP, Münchener Rück, and Rheinmetall.
Market experts pointed globally toward China, noting that while attention remained focused on the region, major positive announcements had been scarce. Furthermore, several negotiated deals within the trading environment had fallen short of elevated expectations. Regarding the situation involving Iran, no significant progress appeared to have been made. Thomas Altmann stated that even if figures like Trump spoke of Chinese support, there was no confirmatory backing from China.
He observed that the stock market naturally reacts when progress in the Iran conflict stalls; typically, this leads to falling stock prices, rising interest rates, and increasing oil prices. Altmann suggested that market volatility across all asset classes will remain high until a sustainably stable peace is established in the region, and investor risk appetite will continue to be dictated by the status of the Strait of Hormuz.
In other market segments, the common European currency weakened during the afternoon session, with the Euro trading at $1.1637 per US dollar, meaning the dollar fetched 0.8593 Euros. The price of gold also saw a significant decline, dropping to $4,554 per fine ounce in the afternoon-a 2.1 percent drop, equating to €125.81 per gram.
Conversely, oil prices rose sharply. The Brent crude oil grade from the North Sea cost approximately $108.80 per barrel at around noon of German time on Friday, representing a 2.9 percent increase compared to the closing price of the previous day.