Wall Street Records Ignored: DAX in the Stranglehold of the 24,000-Point Mark!
While historic highs are literally tumbling on the U.S. technology market, tremulous restraint prevails on the Frankfurt trading floor. Investors simply do not dare to break cover. Although there were timid attempts yesterday, Thursday, to break through the massive resistance to the upside, the bears countered these attempts immediately. At the end of the day, the German leading index salvaged a meager gain of 0.36% across the finish line, at least defending the psychologically essential 24,000 mark at 24,147.54 points.
Energy Panic and Emergency Programs: Waiting for the Hormuz Deliverance
The real stumbling block remains the sheer fear of the escalating energy crisis. The dangerous bottleneck of our energy dependence is currently being ruthlessly exposed: emergency programs are already being activated to avert fatal aviation fuel shortages. Domestic refineries are working at their absolute limits to pump incoming crude oil immediately into the market at full capacity. While the U.S. President publicly downplays the exploding energy costs, investors in this country are craving just one single, redeeming piece of news: the immediate reopening of the Strait of Hormuz.
At the individual stock level, Deutsche Börse defied the tense situation. It shone as the undisputed daily winner with a strong price premium of 1.5%. The defensive Symrise AG (+0.9%) and the healthcare group Fresenius (+0.7%) also successfully held their ground in the top 3 of the leading index.
Data Showdown at the End of the Week: Construction Crisis, Banks, and the Geopolitical Powder Keg
Today, Friday, brings fresh macroeconomic facts to the table. In the morning, investors will look nervously at the German building permits from February—a merciless indicator of the deep real estate crisis. Sales in the hospitality industry will simultaneously reveal whether domestic consumer sentiment has already collapsed. At 10:00 AM CET, the Eurozone will then move into focus with the EU trade balance, which will ruthlessly show whether our export engine is still running smoothly.
The U.S. earnings season could provide additional tailwind in the afternoon: Ally Financial and State Street are opening their books and should dictate the direction for the highly watched banking sector. The absolute mandatory task for the DAX before the weekend is clearly defined: the bastion of 24,000 points must strictly be defended! However, the all-important tipping point before the weekend inevitably remains geopolitics.
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