Subdued Reaction of the DAX to US Labor Market Data Ahead of the Weekend

Despite positive signals from the US, the DAX remained almost unchanged on Friday and closed slightly in the negative. Following the rally the previous day that propelled the German benchmark index to a new record high, the latest US employment data failed to ignite any further euphoria. With a small loss of 0.16 percent, the DAX went into the weekend and recorded a marginal weekly gain of around 0.5 percent. Meanwhile, the MDAX of mid-sized companies slipped deeper into the red with a decline of 0.70 percent. Financial experts, such as portfolio manager Thomas Altmann from QC Partners, nonetheless interpret the recent job data from the US as a positive sign for the stock market. The subdued wage growth gives the US Federal Reserve reason to seriously consider an imminent interest rate cut. This is seen as a potential catalyst for rising stock prices, especially after Fed Chairman Jerome Powell and the European Central Bank indicated signs of an interest rate cut in June. Among individual stocks, the sharp decline of 42.1 percent in Hellofresh caused unrest. Investors pulled back significantly when the meal kit delivery company scrapped its medium-term targets and announced an expected decline in operating profit for the year 2024. Such developments put considerable pressure on confidence in the management. In the winning camp, real estate stocks like Vonovia and Aroundtown stood out, benefiting from the prospect of falling interest rates and recording significant share price gains. Symrise also led the DAX after convincing business figures, while Rheinmetall had to accept losses after a short-term peak. A positive analyst rating helped Beiersdorf achieve a share price increase, and Atoss Software only experienced a slight price decline despite announcing a stock split. In the international context, the Eurozone's leading EuroStoxx 50 index was slightly in the negative, while the CAC 40 in Paris gained and the FTSE 100 in London reported losses. Overseas, the Dow Jones Industrial at Wall Street showed gains, and the tech-heavy Nasdaq 100 even reached a new record. The European common currency temporarily hit a two-month high against the US dollar.