Relief Rally Before the Weekend: DAX Reclaims 25,000-Point Mark and 200-Day Moving Average!
The German benchmark index executed a powerful technical counter-movement to close out the week. With a solid gain of 1.2 percent, the DAX ended trading at 25,102 points, dynamically recapturing both the psychological 25,000 mark and the essential 200-day moving average. Thursday’s weekly low served as a springboard, limiting the weekly loss to a moderate 0.5 percent. The MDAX also shined with temporary gains of almost two percent. The recovery was driven by a temporary easing in oil prices and falling bond yields. At the corporate level, technology and consumer stocks like SAP and Zalando turned the tide. The steel and defense sectors also recorded massive gains. Deutsche Telekom, on the other hand, formed a dramatic contrast: the stock slumped in the wake of a Europe-wide sector weakness, abruptly losing the safe-haven status it had just celebrated on Wednesday.
War of Nerves in the Strait of Hormuz: Sanctions and Shadow Fleet Dominate Sentiment
Despite Friday's price gains, the geopolitical situation in the Middle East remains the overarching pacesetter. Although US President Donald Trump's denial of potential preemptive strikes before the US elections prevented further market escalation, the fundamental tension remains enormous. The US massively expanded its sanctions against the Iranian shadow fleet. As tanker traffic through the Strait of Hormuz has simultaneously plummeted by over a quarter compared to its recent peak, Brent crude stubbornly hovered above the $103 mark at the end of the week.
Liquidity Bottleneck and VW Delivery Figures: Stress Test for the Delicate DAX Recovery
The start of the new trading week is governed by special circumstances: because the US bond market and Japanese stock exchanges remain closed due to holidays, the equity markets are missing a crucial source of liquidity and orientation. At the corporate level, Volkswagen moves into focus with its Q3 delivery figures—an immensely important stress test following the recent price losses in the automotive sector. The core question for Monday is: Can the DAX defend its technical rescue without the pioneering yield signals from the US, or will the unpredictable geopolitical news flow immediately dictate events on the trading floor once again?
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