Friday finally arrived, and the DAX broke its old record high, setting a new record by reaching 23,543 points. Investors are now faced with the decision of whether to take profits or bet that the potential new "deals" of the US President in the tariff dispute with China could lead to further upward momentum.
The potential meeting between Zelenskyy and Putin next Thursday in Turkey could also be viewed positively. There is a faint hope for a ceasefire, which would open the door for diplomatic peace negotiations. The stock markets could react positively to this, as future easing of sanctions against Russia might already be priced in. To what extent Chancellor Merz's meeting contributed to this is unknown; nevertheless, the start of the new federal government gives hope that the concerns of the people in the Federal Republic will be taken more seriously. This, too, can continue to have a positive effect on the DAX, and further records could follow accordingly.
The shares of Commerzbank, Bayer, and Daimler Truck were convincing on Friday. Investors in Bayer stock are pleased that the pharmaceutical company's stock is continuing to work on establishing a bottom. The stock does not yet appear to be completely out of the woods, but the trend of the last few days is encouraging. The next resistance is expected at around €25. If the stock manages to overcome this hurdle, the door for further price gains is open.
UK Stock Markets and British Pound Unimpressed by Tariff Deal
The British stock index FTSE 100 is still further behind its all-time high. Although the tariff deal with the US is viewed positively, the path back towards the all-time high is still somewhat distant. The index still needs to gain a good 3.5 percent to climb above the 9,000-point mark. The British pound also showed little reaction to the US-UK deal. Presumably, these intentions of the US President were already priced in, so there was no surprising effect for the markets.
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