Supported by US labor market data, the German stock market posted further gains on Friday. The DAX rose every day of the trading week, which was last the case in the spring.
The leading German index remains on the move, “but is slowing down,” commented market analyst Konstantin Oldenburger from broker CMC Markets on the last trading day of the week. The labor market in the world’s largest economy is finally cooling down, which makes the expected turnaround in monetary policy seem realistic.
The German stock market barometer went out of trading with an increase of 0.30 percent to 15,189 points, ending the week with a gain of almost three and a half percent. The MDax of medium-sized companies rose by 1.65 percent to 25,137 points on Friday. Profits were also predominantly recorded across Europe. The stock markets in the USA also continued to be friendly.
“Job growth continued in October, but at a significantly slower pace that fell short of the consensus estimate,” commented Helaba economist Ralf Runde on the jobs report. At the same time, the unemployment rate rose slightly and wage developments weakened. All in all, according to him, these figures should not put any further pressure on the US Federal Reserve to take action. The Fed is likely to remain silent in December and not raise the key interest rate any further.
From the Dax, the real estate group Vonovia and the car manufacturer BMW were in view on Friday with quarterly figures. At BMW, sales and profits in daily business rose more significantly than expected, which further drove the recovery of the share price. It rose by 2.0 percent. Vonovia increased by 7.8 percent, continuing the positive trend of the past few days. Hopes of easing interest rates continued to drive growth here. Looking at the annual report, the market was particularly positive about the fact that the reduction of liabilities was making good progress.
In the SDax, the index below the MDax, the beverage bottling equipment manufacturer Krones and the technology group Kontron were in focus. At Krones, traders and analysts alike praised the order situation. The shares gained 7.5 percent. Kontron climbed to a record high of 21.18 euros after an increased profit forecast. Although they ended trading significantly lower, they still recorded a price increase of 2.5 percent.
According to sources, the fact that the medical technology group Siemens Healthineers is reviewing its diagnostics business resulted in a share price gain of 1.2 percent.
The shares of Siemens Energy accelerated their recovery again and rose by 8.7 percent. They have now increased by around half since their record low reached last week.
The Eurozone leading index EuroStoxx 50 rose by 0.12 percent to 4,175 points. Moderate losses were recorded in Paris and London, but things went up in Italy and Spain – as well as in the USA.
According to the US labor market report, the euro passed the $1.07 mark. In the early evening the common currency cost 1.0735 dollars. The European Central Bank set the reference rate at 1.0702 (Thursday: 1.0661) dollars. The dollar therefore cost 0.9344 (0.9379) euros.
On the bond market, the current yield rose from 2.70 percent the day before to 2.72 percent. The Rex bond index fell by 0.09 percent to 124.17 points. The Bund future recently gained 0.47 percent to 130.60 points.
