European Stocks End Friday on a Positive Note, Despite Dollar’s Weakness
The German Dax index continued its upward trend on Friday, with the benchmark closing at a 0.6 percent gain above the previous day’s close, reaching approximately 23,795 points by 12:30 pm. Adidas, Daimler Truck and Porsche led the market, while Rheinmetall, Commerzbank and Zalando lagged behind.
Thomas Altmann, a partner at QC Partners, attributed the current market dynamics to the dollar’s focus, stating that the currency’s weakness is making life difficult for investors. The S&P 500, in USD, has gained 4.4 percent since the beginning of the year, but in euros, it has dropped 7.9 percent, which is not reflected in the positive performance seen by investors in the Eurozone. The dollar’s weakness is affecting the returns on investments, Altmann added.
The partner also highlighted the impact of the dollar’s weakness on the German economy, which is heavily export-oriented. The depreciation of the dollar makes German products less competitive in the US market and vice versa, the weak dollar is a stimulus for US companies that export their products.
As of the afternoon on Friday, the euro was stronger, with one euro equivalent to 1.1703 US dollars and one dollar equivalent to 0.8545 euros.