As the week concluded, the Dax experienced a slight decline. At the close of Xetra trading, the index was calculated at 24,129 points, marking a decrease of 0.1 percent compared to the previous day’s close. While the Dax initially fell into negative territory during the morning session, it rebounded to positive ground by noon and subsequently fluctuated closely around the prior day’s closing level.
Andreas Lipkow, Chief Market Analyst at CMC Markets, shortly before the close, commented that the rise of SAP, which gained around five percent, had likely allowed the Dax to carry the index above the 24,000 mark into the weekend. However, he cautioned that investor nervousness remains high due to the continuing uncertainty in the Middle East, noting that investors are reluctant to take major risks at the moment. He added that oil prices above $100 act as a clear drag factor, as the question of inflation becomes increasingly apparent with each passing day.
Lipkow further suggested that the overall economic situation in Germany could be best reflected by an Ifo Business Climate Index that came in below expectations. He stated that there is a generally noticeable caution among German managers regarding the business cycle, driven by the Iran conflict and sharply increased energy prices. He warned that the situation surrounding key energy resources remains volatile and could worsen in the coming trading weeks.
Leading the list of stocks near the market close were the shares of SAP and Siemens Energy. Toward the bottom of the list were Bayer, Eon, MTU, and Rheinmetall.
In parallel markets, the price of natural gas increased. A megawatt-hour (MWh) of gas for delivery in May cost 45 Euros, an increase of one percent from the previous day. If this price level remains stable, it implies a consumer price of at least nine to eleven cents per kilowatt-hour (kWh), including ancillary costs and taxes.
Oil prices also rose. A barrel of Brent crude, sourced from the North Sea, cost $105.90 on Friday afternoon near 5 PM German time-an increase of 82 cents, or 0.8 percent, compared to the previous day’s closing price.
Finally, the European community currency was slightly stronger on Friday afternoon: one Euro cost $1.1705, meaning one dollar exchanged for 0.8543 Euros.