Frankfurt's stock exchange - Weekly setback for Dax, but still showing positive results for the month.
The DAX concluded a week marked by uncertainty with just a minor increase, ending at 18,497.94 points, a 0.01% hike. Some investors are starting to question the assumption of interest rate reductions in the Eurozone and particularly in the United States.
In terms of weekly performance, the DAX experienced a 1.05% drop. However, the month of May brought a 3.16% upturn. The famous adage "Sell in May and go away" hasn't been justified by the DAX's recent performance as it failed to match its record high of 18,892 points.
The MDAX, home to medium-sized companies, displayed a similar pattern, closing Friday at 26,716.80 points, a 0.33% decrease.
On Thursday of the following week, the focus turns to monetary decisions and declarations from the European Central Bank (ECB). It's predicted that the first interest rate reduction since a lengthy spell of tight monetary policy in the battle against high inflation may come. However, despite May's higher-than-expected Ezone inflation rate, specialists believe the overarching trend indicates a decrease in inflation towards the ECB's target figure.
Landesbank NordLB's chief economist, Christian Lips, noted the ECB's goal is to achieve a medium-term inflation rate of 2%.
In the DAX, Deutsche Bank shares faced major losses, falling 1.3%. The bank propagated the prediction of a less stellar result pertaining to fixed-income and currency trading in the current quarter. Commerzbank shares also decreased by 1.1%.
Siemens Energy declined by 4.7%, marking the end of a punishing trading day. The company had seen considerable gains since the year's outset. Investors are continuing to sell the stock, cashing in on price increases.
The Eurozone index EuroStoxx 50 rose 0.03%, reaching 4,983.67 points. The French CAC 40 and British FTSE 100 recorded more significant gains. In New York, the Dow Jones Industrial edged up 0.2%.
The euro's currency exchange rate strengthened. The European Central Bank's reference rate was set at 1.0852 (previously recorded as 1.0815) US dollars. Consequently, the US dollar amounted to 0.9214 (0.9246) euros.
The yield on government bonds rose from 2.72% the prior day to 2.75%. The Rex bond index decreased 0.25% to 123.12 points. The Bund future gained 0.03% to 129.30 points.
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The DAX's minor weekly increase happened in Frankfurt am Main, one of the major stock exchanges in Germany and part of the Eurozone. The DAX, along with the MDAX, saw a weekly decrease, but the month of May demonstrated a positive performance for both indices. The focus during the following week is on monetary decisions from the European Central Bank (ECB) in Frankfurt, which may lead to the first interest rate reduction in a while. Despite the Eurozone's higher inflation rate in May, experts forecast a decrease towards the ECB's target figure of 2%.
