The German stock market benchmark, the DAX, opened slightly weaker this Friday morning. As of 9:30 AM, the index was calculated at approximately 23,720 points, representing a decline of 1.4 percent from Thursday’s closing level.
All DAX-listed companies initially traded in the red zone upon the start of the trading day, with Bayer shares being the first to deviate and move into positive territory.
“Today promises to be a volatile day on the Frankfurt Stock Exchange” commented Jochen Stanzl, Chief Market Analyst at CMC Markets. “It is significant that even exceptionally strong results reported by Microsoft have failed to provide a substantial boost to the broader market. If positive news of this magnitude fails to stimulate investor enthusiasm, a potential peak in share prices may be approaching.
The upcoming week will see a shift in global trade dynamics with the introduction of tariffs under the Trump administration. Uncertainty remains regarding the practical impact of these historical trade barriers. Stanzl suggested that current high valuations, particularly for US equities, are increasingly difficult to justify. A potential slowdown on Wall Street could significantly impact the DAX.
Today’s trading will reveal whether investor interest in supporting the DAX at the 23,900-point level persists, or if a shift in investor behavior is underway. This level is being viewed as increasingly fragile. “Conditions could become uncomfortable if this support level fails” Stanzl stated. “Should the DAX decisively break below this mark, the risk of a significant sell-off increases, potentially amplified by automated stop-loss orders. The likelihood of a downward trend in the DAX is growing.
The European single currency was slightly firmer this morning, with the Euro trading at 1.1426 US dollars, corresponding to a dollar being worth 0.8752 Euros.