The Dax continued to be in the green on Friday after an already strong start to the trading day. At around 12:30, the leading index was calculated at around 22,885 points, an increase of 1.7 percent from the previous day’s closing level.
“Market participants are still focusing on the stocks of Airbus, MTU, Siemens Energy and SAP” said market analyst Andreas Lipkow. “The aviation sector is currently seen as an exception, as demand for aircraft remains high and is less affected by the impact of trade tariffs.”
“Defensive sectors are less in demand, with the stocks of Eon, RWE and Munich Re on the losing side. Additionally, shares of BASF are being sold after underwhelming quarterly results.”
The macroeconomic data from the EU did not pose any headwinds. “Mostly, these fall within expectations. The de-escalation trend in the trade conflict between the US and China is the momentum-bringing topic in international financial markets and is driving stock markets.”
“However, a portion of skepticism should still be present regarding the future of operational profits for many companies and industries. The existing and future trade tariffs will have an impact on the development of earnings. Further clarity can already be provided by the upcoming US macro data today” said Lipkow.
The European community currency was stronger on Friday afternoon: one euro was worth 1.1348 US dollars and one US dollar was equivalent to 0.8812 euros.