The German Dax index closed slightly lower on Friday, ending the day at 24,304 points, a 0.1 percent decline from the previous close. Despite a sluggish start, the index had approached the closing level of the previous day by the end of the trading session.
Market analysts, such as Andreas Lipkow, attributed the lack of significant gains to a mix of factors. “While investors are relieved that the US labor market data came in better than expected, the Dax is not reflecting that relief” Lipkow said. “The US job market data, with 139,000 new jobs created, is a positive sign, but the average hourly wages have also increased, which could potentially lead to inflation concerns.”
Despite these concerns, Lipkow believes that the current market sentiment is more focused on the positive aspects of the US job market, with defensive sectors and technology stocks being favored over cyclical sectors. “Investors are being cautious in the classic cyclical sectors, but are more optimistic about the defensive sectors and technology” he noted.
In the Frankfurt stock exchange, Hannover Rück shares led the gains, while Rheinmetall shares closed at the bottom of the list.
Meanwhile, the gas price has fallen, with a megawatt-hour of gas for delivery in July costing 36 euros, which would translate to a consumer price of at least eight to ten cents per kilowatt-hour, including additional costs and taxes, if the price remains stable.
In contrast, the oil price rose, with a barrel of Brent crude oil costing 66.24 US dollars, a 1.4 percent increase from the previous day’s close.
The euro, the European Union’s common currency, was weaker against the US dollar, with one euro exchanging for 1.1384 US dollars and one US dollar for 0.8784 euros.