DAX Gains Ground

Frankfurt’s DAX 40 extended early gains on Friday, rising over 1% to cross 25,200, led by tech stocks, while falling oil prices eased inflation concerns and helped drive bond yields lower. Reports that European countries could release oil reserves following a French proposal offered some relief. Meanwhile, Eurozone inflation accelerated to 3.8% in September, its highest level in three years and above analysts’ expectations of 3.6%. The recent bond selloff could nevertheless make the ECB more cautious about raising interest rates again. Despite the improved market sentiment, geopolitical risks remained in focus, with prospects for a truce between the United States and Iran appearing increasingly distant. The US is reportedly sending a third aircraft carrier to the region, along with an additional 10,000 American troops. Tech stocks saw strong buying, with Infineon Technologies surging over 5% and AI related Siemens Energy up 2.7%. Industrials, autos and telecom also performed solidly.

Frankfurt’s DAX 40 edged up 0.3% to just above 25,000 on Friday, attempting to recover after two consecutive sessions of losses. Markets found some relief as oil prices declined and the bond selloff eased, with investors awaiting the latest Eurozone inflation data for clues on the ECB's next moves. Meanwhile, attention remained focused on the Middle East, where prospects for a truce between the United States and Iran appears increasingly distant. According to the Wall Street Journal, Washington is sending a third aircraft carrier to the Middle East with an additional 10,000 American troops. The tech sector outperformed, with industrials also moving higher, while pharmaceutical and banking stocks lagged. Infineon Technologies (2.7%) led gains among stocks, alongside AI-related Hochtief (2.2%) and Siemens Energy (1.7%). Airbus, Continental and Scout24 also advanced firmly. On the flip side, Commerzbank dropped over 2% after RBC downgraded the stock to "sector perform" from "outperform".

The DAX Index is up by 88 points or 0.35 percent on Friday. Top gainers are Infineon (2.56%), Siemens Energy (1.57%) and Airbus (1.44%). Biggest losses came from Commerzbank (-2.11%), Qiagen NV (-2.08%) and Adidas (-0.98%).