After an exciting week, investors on the German stock market kept their feet still on Friday. Price movements were limited.
The DAX started trading with a slight loss of 0.15 percent at 24,819.94 points and showed little change, even with manageable movements. Ultimately, it ended the weekend 0.18 percent higher at 24,900.71 units.
The last DAX record
On January 13th, the DAX reached an all-time high of 25,507.79 points, exceeding the 25,500 point threshold for the first time in its history. Ultimately, it ended the day at 25,420.66 points, which was a new record based on the closing price.
Analyst: “Taco-Trade” prevailed once again – remaining calm despite the turbulence
On Friday, the DAX at least remained close to the 25,000 point mark, which it had fallen below at the start of the week due to customs concerns that have now been dispelled. “The details of the Greenland deal have been well received on the stock exchange,” wrote portfolio manager Thomas Altmann from QC Partners. On Thursday, investors “bought on a large scale” again – with the highest trading turnover in the 40 DAX stocks this year.
US President Donald Trump made a U-turn in the dispute over Greenland on Thursday. He withdrew announced US punitive tariffs against eight European countries including Germany on February 1st and announced a framework agreement with NATO to resolve the recent dispute over Greenland.
This means that the stock markets have weathered another political storm, said a stock market trader. However, markets remained extremely sensitive to political risks, which could also pose a major risk in the coming months. “Keep calm, hedge and carry on,” was the recommendation of Barclays analyst Emmanuel Cau this morning. The rapid de-escalation of the Greenland crisis suggests that the Trump administration shows little tolerance for a stressed market situation. It becomes clear once again that she is still aware of the pain threshold of stock investors and is very sensitive to reactions on the financial markets. Once again, the so-called “taco trade” has prevailed, in which investors bet that Trump will soften his position at some point.
Talks between Ukraine, Russia and the USA ahead
At the weekend, the Ukraine war will once again come into focus as diplomatic efforts to end it are gaining momentum. For the first time after a month-long break, the warring parties want to talk to each other again on an official level today – in the capital of the United Arab Emirates, with the USA mediating. The meeting of Russian and Ukrainian negotiators in Abu Dhabi is expected to be the highlight of a series of diplomatic meetings, following separate talks with the US government on Thursday.
Editorial team finanzen.net / dpa-AFX
