The leading German index recorded another setback at the end of the week. Interim hopes of an end to the war in Iran were probably lost.
The DAX began Friday trading with a loss of 0.88 percent at 24,447.65 points and remained in the red for the rest of the day. In late trading, the minus became even greater, so that the leading index ultimately entered the weekend with a discount of 1.32 percent at 24,338.63 points.
The interim recovery in this trading week in connection with the AI boom on Wall Street and in Asia as well as the signals of relaxation from the Middle East was once again a waste of time. It reached its weekly high on Wednesday with 25,152 points, well below its January record of 25,507 points. Now it should close the price gap that opened up on Wednesday from 24,400 points.
Hope for an end to the war evaporates
The ceasefire between the USA and Iran is currently being put to the test: After Iranian attacks on three US destroyers in the Strait of Hormuz, the US military attacked targets in the Islamic Republic in retaliation. After the strikes on Iranian targets, US President Donald Trump again threatened Iran to “quickly” sign a peace agreement. The ceasefire that has existed for around a month still applies. Oil prices rose again.
Analyst Jochen Stanzl from broker CMC Markets sees growing risks for the recently AI-driven and increasingly carefree market if the Iran conflict remains unresolved.
US labor market data surprises
Before the weekend, the US labor market report published in the afternoon caused a surprise. Contrary to expectations, the number of employees increased significantly in April. “Jobs were once again created primarily in the service sector, especially where people are challenged,” wrote Thomas Gitzel, chief economist at VP Bank. “The use of artificial intelligence, however, replaces humans in other service areas, which is reflected in job losses.” Employment in information technology fell by 11 percent. “This shows how drastic artificial intelligence already is on the job market,” wrote Gitzel.
Balance sheet season with a breather
On Friday, the reporting season, which had kept the markets on tenterhooks in recent days, took a breather and allowed investors to take a breather.
DAX record last in January
The gap to record levels remains on the German stock market. On January 13th, the DAX reached an all-time high of 25,507.79 points. Ultimately, it ended trading that day at 25,420.66 points, which also set a record based on the closing price.
Claudia Stephan, Alexandra Hesse, Benedict Kurschat, finanzen.net editorial team with material from dpa-AFX and Dow Jones Newswires
