DAX closes in positive territory despite gloomy economic data and declining consumer sentiment
Germany’s DAX index closed higher on Friday, rising by 0.4% to 24,288 points. The gains were led by shares in Commerzbank, MTU, and Bayer, while Zalando remained at the bottom. Chancellor Olaf Scholz also announced new measures to support economic recovery through a special fund for infrastructure and defence.
Trading began with the index hovering near Thursday’s closing level. By the end of the day, it had pushed into positive territory. Commerzbank, MTU, and Bayer saw the strongest gains, while Zalando underperformed.
In currency markets, the euro weakened slightly against the dollar. One euro traded at $1.1716, a small decline from the previous session. Energy markets also saw movement, with January gas contracts rising by 2% to €28 per megawatt-hour. A barrel of North Sea Brent crude climbed by 32 cents, or 0.5%, to $60.14. Economic concerns persist as businesses hold back on investment due to uncertainty. Domestic consumption remains weak, and consumer confidence has fallen to its lowest point since early last year. High inflation and declining income expectations are adding to the pressure. The government’s special fund for infrastructure and defence is now seen as the key driver for any potential recovery, with funds expected to reach contractors in the coming weeks and months.
The DAX ended the week on a positive note, but broader economic challenges remain. Weak consumer spending and cautious business investment could slow growth. Meanwhile, the government’s infrastructure and defence fund may provide a much-needed boost in the near future.
