The DAX Index Closes 0.24% Higher

Frankfurt's DAX 40 managed to close about 0.3% up at 24,915 on Friday, halting a three-day losing run, mainly supported by defense and aerospace stocks and tech companies. MTU Aero Engines was among the top gainers, rising 4.4%, benefiting from the optimistic outlook from French peer Safran. Hensoldt (2.7%), Rheinmetall (2.1%) and Renk (0.4%) saw increased buying, as traders eyed developments at the Munich Security Conference, which runs until Sunday. Shares in Rheinmetall were also underpinned by news of its automotive divestment and a €200 million NATO contract for 120mm ammunition. SAP (1.5%) and Infineon Technologies (1.4%) rose on easing AI worries. On the flip side, banks led declines, with losses up to 5.2%. Investors trimmed positions in the sector after a soft US inflation report reinforced expectations of further Fed cuts and left open the possibility of renewed easing by the ECB, which could squeeze banks' margins. For the week, the index rose 0.8%.

The DAX Index gained 61 points or 0.24 percent on Friday to close at 24913 points. Gains were led by Deutsche Boerse (5.23%), MTU Aero Engines AG (4.06%) and Gea Group (2.70%). Biggest losers were Commerzbank (-5.34%), RWE (-4.21%) and Deutsche Bank (-4.02%).

The DAX 40 stayed subdued on Friday afternoon, fluctuating just above parity at around 24,850, as a cautious sentiment prevailed despite a benign US inflation report that reinforced expectations of Fed rate cuts this year. Lingering concerns over the potential impact of AI on business models continued to worry global inventors. Among stocks, RWE was the worst performer, after Bernstein downgraded its rating to "market-perform" from "outperform," citing concerns about valuation after a significant rally that saw shares rise approximately 57% by 2025 and more than 15% by early 2026. On the opposite side, defense and aerospace stocks such MTU Aero Engines and Rheinmetall gained traction. MTU Aero Engines was among the top gainers, rising 4.6%, benefiting from the optimistic outlook from French peer Safran. Rheinmetall rose 2.8% on news of its automotive divestment and a €200 million NATO contract for 120mm ammunition.