DAX closes in positive territory despite gloomy economic data and declining consumer sentiment
Gas prices in Europe edged higher on Friday, with January delivery contracts rising to €28 per megawatt-hour (MWh). This marked a 2% increase from the previous day, adding pressure on household energy costs. Meanwhile, stock markets showed cautious gains as investors weighed economic concerns against rising oil prices.
The European gas index started the day near Thursday’s closing level but climbed in the afternoon. If prices stay at this level, consumers could pay between seven and nine cents per kilowatt-hour (kWh), once taxes and levies are included.
In Frankfurt, the DAX index closed at 24,288 points, up 0.4% from the previous session. Shares in Commerzbank, MTU, and Bayer led the gains, while Zalando remained at the bottom of the index. Oil also saw a slight rise, with North Sea Brent crude trading at $60.14 a barrel, a 0.5% increase. Economic concerns continue to weigh on confidence. The GfK consumer confidence index fell to minus 26.9, its lowest point since early last year. High inflation and falling income expectations have left consumers reluctant to spend, while businesses hesitate to invest due to uncertain prospects. Hopes for a recovery now depend on a special fund for infrastructure and defence, expected to reach contractors in the coming weeks and months.
Higher gas prices and weak consumer confidence suggest ongoing financial strain for households. The small gains in stocks and oil offer little relief, with economic growth likely to remain sluggish. All eyes are now on whether the promised infrastructure funding will provide a much-needed boost.
Read also:
- India's Agriculture Minister Reviews Sector Progress Amid Heavy Rains, Crop Areas Up
- Sleep Maxxing Trends and Tips: New Zealanders Seek Better Rest
- Over 1.7M in Baden-Württemberg at Poverty Risk, Emmendingen's Housing Crisis Urgent
- Life Expectancy Soars, But Youth Suicide and Substance Abuse Pose Concern
