European markets experienced a positive close to the week, with Germany’s DAX index finishing at 24,363 points – a gain of 0.3 percent compared to the previous day’s closing value. Initial trading saw the index dip slightly, but it quickly recovered to approach the previous day’s level before gaining further momentum throughout the afternoon.
Market analyst Andreas Lipkow noted investor focus shifting towards pharmaceutical and defense companies, alongside increased, albeit smaller, buying activity in the automotive sector, contributing to overall market breadth. Conversely, utility stocks and shares of Deutsche Telekom experienced less demand, as did Beiersdorf and Deutsche Post, all posting losses. Lipkow characterized the overall market sentiment as calm and unperturbed.
Daimler Truck and Zalando led the DAX gainers at the close of trading, while Commerzbank shares lagged behind.
Commodity markets presented a mixed picture. The price of natural gas rose to €33 per Megawatt hour (MWh) for September delivery, potentially translating to consumer prices of at least 8-10 cents per Kilowatt hour (kWh) inclusive of taxes and fees should this level be sustained. Meanwhile, Brent crude oil saw a slight decrease, trading at $67.66 per barrel – one cent lower than the previous day’s closing price.
The Euro strengthened against the US dollar, reaching $1.1727 – a gain of 1.01 percent. This put the dollar at 0.8527 Euro.