On Friday, June 20, 2025, the German benchmark index DAX saw a noticeable recovery after some weak trading days, rising by about 1.3 percent to around 23,355 points. This development revives hopes for stabilization in the markets, a matter of great interest for private investors and shareholders.
Ups and Downs: A Week Full of Uncertainties
The recent days were characterized by a consolidation phase after the DAX had risen sharply in the past months, with many positive expectations already priced in. An escalation in the Middle East had increased risk aversion and raised volatility, which heightened nervousness among investors.
Positive Impulses from Falling Oil Prices
On Friday, falling oil prices — down about 3 percent — provided new momentum for investors. Additionally, optimistic statements from Donald Trump about negotiation opportunities made an immediate U.S. military intervention seem less likely, which also benefited the markets. Further reassurance came from falling German producer prices in May and a slight easing in bond yields.
The Witching Hour and Its Effects
Friday also coincided with the so-called “Witching Hour,” the major expiry day at futures exchanges when many futures and options on DAX index values expire. These events often lead to increased market activity and can intensify short-term price movements.
Overall, Friday marks a noticeable recovery of the DAX after a period of weakness. These positive impulses from geopolitical easing and macroeconomic data offer private investors at least a bit more confidence regarding market developments in the short term.