The DAX index saw a significant increase at the end of the week. By the close of trading on Xetra, the index stood at 24,702 points, marking a gain of 2.3 percent compared to the previous day’s close.
After showing initial hesitation, the DAX built on its gains during the morning session. The index rose by over 300 points, boosted by an announcement from Iran that it would lift the blockade of the Straits of Hormuz. Passage through the waterway is expected to be possible during a ceasefire in Lebanon. However, investors remain uncertain whether shipping can resume within just ten days, given the difficulties in insuring goods transportation through the Straits of Hormuz. Investors are also hopeful that the ceasefire might be extended or even lead to a formal agreement.
Most DAX stocks profited on Friday, with shares in MTU, Infineon, and Continental performing the best. In contrast, stocks from Eon, Brenntag, and RWE struggled, closing in negative territory.
Oil prices dropped sharply; a barrel of the Brent North Sea variety cost $88.73 on Friday afternoon against German time, representing a decline of 10.7 percent compared to the previous day’s closing price.
Natural gas prices also fell considerably; a megawatt-hour (MWh) of gas for May delivery cost €38, which is a nine percent drop from the previous day. If this price level remains stable, it implies a consumer price of at least around eight to eleven cents per kilowatt-hour (kWh), including ancillary costs and taxes.
The European common currency was slightly stronger on Friday afternoon: one euro cost $1.1804, making a dollar available for 0.8472 euros.