The DAX slipped into negative territory on Friday after an initially positive start to the trading day. By around 12:30 p.m. local time the benchmark index had eased to roughly 23,750 points, about 0.3 percent below yesterday’s closing level.
“Investors are increasingly worried about the rising crude‑oil prices” said Andreas Lipkow, chief market analyst at CMC Markets. “Brent is trading around $87 a barrel, inching closer to the psychological $100 mark”.
The International Monetary Fund has warned that a ten‑percent rise in oil prices could boost global inflation by 0.4 percent and dampen economic growth by 0.1-0.2 percent. The impact would be felt most acutely by oil‑poor industrial nations in Europe and Asia.
Thus the market lights turn red, yet no panic has yet unfolded in the DAX. Investors still see the current flare‑up in Iran as a short‑term military confrontation, though that optimism is not universally accepted. The scenario remains unclear, and a chain reaction could erupt at any moment.
Today’s Eurozone GDP figures provided no reason for celebration. Growth lagged expectations, underscoring the fragility of the current European economic upswing. If the already‑increased energy costs now influence future business and consumer sentiment, the mood in companies and households could quickly darken.
Lipkow added that, with the weekend approaching, investors might adopt a more defensive stance or sit on the sidelines.
The euro fell against the dollar on Friday afternoon, trading at $1.1580 per euro and €0.8636 per dollar.
Gold benefited modestly, with a fine ounce priced at $5,096 (+0.2 percent), equivalent to €141.48 per gram.
Meanwhile, the price of Brent crude surged, reaching $87.77 a barrel around 12 p.m. German time-an increase of 2.8 percent over the previous day’s close.