The DAX Index Closes 0.10% Lower

The DAX Index dropped 27 points or 0.10 percent on Friday to close at 26745 points. Losses were led by Infineon (-4.09%), Hochtief (-2.48%) and MTU Aero Engines AG (-1.26%). Offsetting the fall, top gainers were Brenntag (2.26%), E.ON (1.64%) and Fresenius Medical Care (1.26%).

Frankfurt's DAX 40 closed marginally down at 26,757 on Friday, but still near record levels, as a strong earnings season helped to offset concerns over inflation and interest rates Investors also remained cautious amid uncertainty surrounding Nvidia’s leadership transition and its implications for the AI sector. Technology and aerospace and defence stocks were the biggest draggers, while insurers and utilities performed solidly. Infineon Technologies led losses, slipping over 4%, with AI-related Hochtief (-2.1%) and Siemens Energy (-0.9%) also falling significantly. MTU Aero Engines and Rheinmetall lost 1.6% and 0.9%, respectively. Brenntag (+2.1%) stood out, while insurance stocks also performed well, with Munich Re and Allianz each rising over 1%. E.ON (+1.6%) and RWE (+0.6%) gained on reports of a planned German government acquisition of their combined one-third stake in UK-based Urenco. For the week, the index gained 3.6%, marking its best performance since June.

Frankfurt's DAX 40 turned slightly positive on Friday, breaking above the 26,800 mark to hit a fresh record, as optimism over the earnings season offset concerns about inflation and potential interest rate hikes. Meanwhile, investors continued to assess the potential implications of Nvidia CEO Jensen Huang's reported resignation for the broader technology sector. Utilities and insurers were among the top performers, while aerospace and defence stocks and tech companies lagged. Brenntag surged over 2% to the top of the index. E.ON (+1.5%) and RWE (+0.8%) were boosted by reports that the German government plans to acquire their combined one-third stake in nuclear UK-based company Urenco. Meanwhile, Mercedes-Benz Group announced on Thursday that it would halt all new investment at its German facilities for the time being, while also considering potential plant closures. On the losing side, Rheinmetall (-2.1%), Vonovia (-1.2%) and MTU Aero Engines (-1.1%) were the worst performers.