The DAX started the trading day Friday morning with a cautious tone. Around 9:30 AM, the leading index was calculated at approximately 24,185 points, representing a 0.1 percent increase from the previous day’s closing level.
Speaking to Thomas Altmann of QC Partners, who commented on the market sentiment, he stated, “The hope for peace remains, but reports of potentially very drawn-out negotiations are causing energy prices and inflation concerns to rise again. This is evident in the renewed rise of interest rates, which, alongside high energy costs, represent a significant burden for companies. Furthermore, even setting aside interest rate backgrounds, investors must critically question whether the US exchanges have prematurely factored in the Iran conflict when hitting all-time highs”.
Regarding technical levels, Altmann noted that the options expiration today is unlikely to have a major impact on price movements. He explained that April is one of the smaller expiration dates. Although the DAX has its third largest outstanding options position expiring today-a put option with a strike price of 21,450 points-its low strike price means it will not influence the market. The most significant level during today’s options expiration is surely 24,000, where 2,629 call and 4,817 put contracts are set to expire.
Altmann added that the DAX concluded yesterday above its 200-day moving average for the first time since March 4. It will be interesting to see how many technical models and investors will utilize this positive signal as a potential buying entry. He suggested that this crossover could release further upward price potential.
In other markets, the Eurozone currency was slightly weaker Friday morning, trading at 1.1778 US dollars per euro, meaning a dollar cost 0.8490 euros. Meanwhile, the price of gold experienced a slight dip; a fine ounce was priced at $4,787 in the morning (-0.1 percent), equating to 130.68 euros per gram. Crude oil prices fell as well: a barrel of North Sea Brent oil cost $98.59 around 9 AM Central European Time, representing a decrease of 80 cents, or 0.8 percent, compared to the previous day’s closing.