Dax current: Dax starts well in the red and slips below 26,000 points

On Thursday, the Dax reached a new record high, but there is little of the positive sentiment left. After the significant price slide on Wall Street, the DAX is also going downhill.

Frankfurt Stock Exchange: The earthquake on the Asian markets and on Wall Street is also affecting the German stock market.

The Dax lost 1.7 percent at the start of trading on Friday and was trading at 25,873 points after a sell-off on Wall Street, which also had a heavy impact on tech stocks.

On Thursday, the Dax reached a record high of 26,685.23 points, but lost 0.4 percent to 26,325 points by the end of trading after Wall Street fell significantly.

Oil prices are rising again, with Brent up 1.4 percent to $99.70 and WTI up 1.1 percent to $91.50, despite ongoing differences over the Iran conflict.

German production rose surprisingly by 0.7 percent in September compared to the previous month, according to the Federal Statistical Office, while analysts had expected a stagnating figure.

Dusseldorf. The tremor on the global markets, which began yesterday afternoon on Wall Street, is now also clearly affecting the Dax. At the start of Friday, the leading German index lost 1.7 percent or more than 400 points and was trading at 25,873 points.

The tech stocks on the German stock market initially recovered on Friday. Yesterday they lost between eight and 14 percent.

"After the index rose by over 1,800 points on a monthly basis, investors are taking profits. The reflex is understandable. Anyone who invests in the DAX probably also has AI stocks," writes Jochen Stanzl, chief market economist at Consorsbank.

On Thursday, the outcome of the midterms in the USA, hope for diplomatic progress in the Iran war, falling energy prices and bond yields as well as positive company balance sheets gave the DAX a boost. At midday it reached a new record high and rose to 26,685.23 points.

However, the daily gains were quickly lost in the afternoon. Wall Street opened significantly in the red. Tech stocks in particular slipped and weighed on the Dax. In the end it closed 0.4 percent in the red at 26,325 points.

Concerns about increased political resistance in the US to the rapid expansion of data centers for artificial intelligence (AI) caused the indices to falter. The industry-heavy Dow Jones index fell by 3.4 percent on Thursday, the technology-heavy Nasdaq fell by a good six percent and the Philadelphia semiconductor index even fell by a good 12 percent.

"Due to new majorities and changes in political leadership at the state level, data center projects that were previously considered safe may come under scrutiny again. This increases uncertainty about future investment needs and the speed of the planned capacity expansion," analyzes Andreas Lipkow from CMC Markets.

In just 40 minutes, the S&P 500 destroyed two trillion dollars in market capitalization, Kobeissi Letter wrote on Thursday on the short message platform X. “This is one of the fastest losses in market capitalization in stock market history.”

Fears of stricter regulation of the AI ​​industry after the Democrats' election victory are also leaving their mark in Asia. The Nikkei index temporarily slipped by a good seven percent, the broader Topix by 6.5 percent.

"Markets are increasingly questioning the AI ​​trade as the Magnificent Seven's previous results have fallen short of growth expectations and concerns are emerging about a slowdown in AI investment. At the same time, a Democrat-controlled Congress is increasing uncertainty about possible tech regulation," Kyle Rodda, senior financial market analyst at capital.com, analyzes the market.

Oil prices are rising again

Meanwhile, oil prices are rising again at the end of the week. A barrel (159 liters) of North Sea Brent crude oil for delivery in January rose by 1.4 percent to $99.70 this morning. The US WTI light oil for delivery in December also rose in price by 1.1 percent to $91.50.

The Democrats' significant gains in the US midterm elections had previously triggered a price slide. Despite the recent increase, Brent is still down around 15 percent on a weekly basis.

Hopes are growing on the oil market for a quicker end to the war between the USA and Iran. However, there are still significant differences between the parties to the conflict. Tehran is demanding the lifting of the American naval blockade, an easing of sanctions and the release of frozen assets before the Strait of Hormuz is fully reopened.

“What matters is whether the White House changes its strategy toward Iran,” Pavel Molchanov, an analyst at Raymond James, told Bloomberg. A lasting diplomatic agreement that leads to the reopening of the Strait of Hormuz could cause oil prices to fall even further. However, skepticism is still appropriate.

Individual values in focus

Munich Re: The analysts at JP Morgen have downgraded Munich Re's shares to “Neutral” from “Overweight”. The papers lose 2.4 percent.

Daimler Truck: The truck manufacturer reported a significant increase in profits on Friday. Investors are still not convinced. The share falls by 3.9 percent.