The DAX Index Closes 0.17% Higher

The DAX Index went up by 43 points or 0.17 percent on Friday to close at 26046 points. The rise was led by Volkswagen (6.78%), Porsche Automobil (3.96%) and Zalando (2.89%). On the downside, the weakerst performers were Rheinmetall (-3.19%), Fresenius (-1.35%) and Merck (-1.25%).

The DAX 40 closed about 0.2% up at 26,048 on Friday, marking the second day of gains, powered by the automotive sector. Technology stocks and industrials also provided support. Volkswagen shares jumped over 6%, following the board’s approval of its biggest restructuring plan in 89 years. The plan includes 50,000 job cuts and alternatives for four German plants, while also reducing the supervisory board’s influence on key decisions, where unions and Lower Saxony hold a majority. BMW (1.9%), Continental (1.9%) and Mercedes-Benz Group (1%) advanced solidly. Semiconductor stocks also attracted buying interest, with Infineon up 2.4%. Meanwhile, investors remained focused on the interest-rate outlook, while geopolitical tensions in the Middle East persisted. The ECB is expected to raise rates by 25 basis points next week, while a hotter-than-expected US jobs report has also revived expectations for further rate hikes. The index posted a weekly decline of roughly 2%.

The DAX 40 edged up 0.3% to around 26,070 on Friday after a slow start, extending modest gains for a second session. The automotive sector provided the main support, led by a 7% surge in Volkswagen shares following the board’s approval of its biggest restructuring plan in 89 years. The plan includes 50,000 job cuts and alternatives for four German plants, while also reducing the supervisory board’s influence on key decisions, where unions and Lower Saxony hold a majority. BMW and Volkswagen rose 1.7% and 1.1%, respectively. Other notable performers included Heidelberg Materials (2.3%), Infineon Technologies (1.5%) and Airbus (1.2%). Meanwhile, market participants continued to assess the outlook for the monetary policy, with the ECB expected to deliver a 25 bps rate hike next week. Developments in the Middle East also remained in focus. The index was set to decline about 1.9% this week.