The Dax ended the week with a slight decline, but the losses were significantly reduced by the end of the trading day. At the Xetra closing, the index stood at 19,885 points, 0.4 percent lower than the previous day.
During the day, the Dax had slumped as low as 19,650 points, a 1.6 percent decline from the previous day. The rebound in the last trading hours was clearly driven by the US markets, which were experiencing a relief rally after the interest rate decision. According to a new analysis, the PCE report suggests that the concern about long-term high interest rates might be overblown, as inflation in the US might rise less strongly than expected.
“If a solution to the budget dispute in the US is found in the near future, the sharp price drop could quickly turn into a bear trap” commented Jochen Stanzl from CMC Markets on the development.
In the Dax, Vonovia papers rose by over two percent, reacting particularly sensitively to news from the interest rate front, as the real estate company relies on low borrowing costs. Volkswagen papers followed, likely benefiting from the impending agreement in the labor dispute.
On the other hand, various financial titles fell sharply: Commerzbank and Deutsche Bank lost around two percent, followed by Munich Re shares, which were the third-largest loser, down by 1.6 percent.
The European common currency was stronger on Friday afternoon: one euro cost 1.0432 US dollars, and one dollar was worth 0.9586 euros.