Frankfurt Stock Market Sees Little Movement Ahead of Inflation Data Release

The Frankfurt stock market experienced little movement on Friday ahead of inflation data from Germany. The DAX rose 0.19% to 23,978.18 points, while the MDax remained virtually unchanged at 30,698.45 points. Investors remain cautious due to uncertainty surrounding US tariff policy and the upcoming ECB Governing Council meeting. Economic data, including German inflation figures and US price data, will be released later in the day.

The Frankfurt stock market experienced minimal movement on Friday as investors remained cautious ahead of the release of inflation data from Germany. The DAX, Germany's benchmark index, rose by 0.19 percent to 23,978.18 points, while the MDax, which tracks medium-sized companies, remained virtually unchanged at 30,698.45 points [1].

Investors' attention was divided between the uncertainty surrounding US tariff policy and the upcoming ECB Governing Council meeting. The DAX's recent strong performance was tempered by the ongoing trade tensions with the United States, which continue to cast a shadow over market sentiment [1].

The focus on Friday shifted to economic data, with German inflation figures and US price data scheduled for release later in the day. Experts at Landesbank Helaba expect inflation in Germany to fall to exactly 2 percent on average, which could influence the ECB's interest rate decision at its upcoming meeting [1].

The US AI group Nvidia is also expected to report its first-quarter results on Wednesday, which could provide additional market insights. The company's chips are key technology for the booming artificial intelligence (AI) business, and its performance is closely watched by investors [2].

Despite the uncertainty, the DAX has more than offset its April slump following the initial US tariff announcements. Experts attribute this recovery to hopes for a final resolution of the tariff dispute and the financial package passed by the CDU/CSU and SPD. Additionally, good corporate figures, low valuations compared to US stocks, and the recent easing of inflation concerns have contributed to the market's resilience [2].

The latest inflation figures from the individual federal states and from Germany are eagerly awaited, as they could trigger significant price movements in the stock market. The ECB's interest rate decision is expected to be influenced by these figures, given the central bank's mandate to maintain price stability [1].

The EUR/GBP cross remains under selling pressure due to weak Eurozone data, with the Euro weakening against the Pound Sterling. The Bank of England's (BoE) Deputy Governor Sarah Breeden is set to speak later on Thursday, which could provide further insights into the UK's monetary policy [3].

In summary, the Frankfurt stock market showed little movement on Friday, with investors awaiting key economic data releases and the upcoming ECB Governing Council meeting. The DAX and MDax indices remained largely unchanged, reflecting the cautious market sentiment.

References:
[1] https://www.marketscreener.com/quote/index/DAX-7395/news/Frankfurt-stock-market-opening-Little-movement-ahead-of-inflation-data-50111210/
[2] https://www.marketscreener.com/quote/index/DAX-7395/news/Further-DAX-records-likely-postponed-due-to-new-US-tariff-threats-50060710/
[3] https://www.fxstreet.com/news/eur-gbp-weakens-below-08400-amid-prospect-of-ecb-rate-cuts-202505290652