After a five-day losing streak, DAX investors found renewed confidence, driving the index to a much-needed gain. The DAX closed with an impressive 1.5 percent increase at 24,370.93 points, signaling a potential breather after recent setbacks.
This recovery was significantly fueled by the debunking of rumors surrounding the dismissal of Fed Chairman Jerome Powell. These headlines, which had caused concern, were largely dismissed during Wednesday evening's US session. While political denials can sometimes be interpreted as tactical maneuvers—especially given the differing monetary policy views between Powell and Donald Trump—it's clear that the US President lacks the authority to simply dismiss the Fed Chair. This clarity noticeably calmed the markets.
Tariff Dispute: A Glimmer of Hope or Endless Uncertainty?
Another persistent issue keeping the market on edge is the unresolved tariff dispute between the EU and the US. The market continues its zigzag course here: every new announcement or significant comment is immediately evaluated and priced in by market participants. This leads to ongoing volatility in the DAX, without a clear direction. Investors must prepare for dynamic times that demand quick reactions.
The biggest beneficiaries of the recent shift were Siemens Energy and Siemens. Siemens Energy surged a strong 4.7 percent, while Siemens shares also achieved a top daily result with a 4.1 percent gain. MTU Aero Engines followed in third place with a 2.4 percent price increase.
Positive Friday for DAX? Watch Out for Profit-Taking!
The signs for today's trading session are positive. If ad-hoc news remains quiet, the market is likely to continue its upward trajectory. However, there's a possibility of profit-taking towards the end of trading to reduce weekend risk. This, in turn, could lead to short-term price drops. Investors would be well-advised to closely monitor developments.
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