FRANKFURT (dpa-AFX) - Following weak cues from Asia, the Dax edged lower in early Friday trading as the AI-driven market rally faced increasing headwinds. The German benchmark index was recently down 0.33 percent at 24,862 points, drifting further away from the psychological 25,000-point threshold it had approached earlier this week.
The MDax, which tracks mid-cap companies, fell 0.49 percent to 32,640 points on Friday morning. Meanwhile, the Eurozone's blue-chip EuroStoxx 50 index declined by 0.5 percent.
Market analyst Timo Emden of Emden Research pointed to the upcoming SpaceX IPO, which is expected to serve as the first major stress test for the AI rally. 'The listing could become a barometer for how much venture capital can still be mobilized after years of the AI and tech rally.' Investors may shift risk capital and withhold additional liquidity in the coming trading days.
The focus now shifts to the U.S. non-farm payrolls report for May, due this afternoon. While a strong report would not trigger a rate hike, analyst Jochen Stanzl of Consorsbank noted that 'it could be the proverbial straw that breaks the camel's back regarding interest rate fears. A robust labor market could further drive up already surging yields in the U.S. bond market, bringing the specter of high rates back to the equity markets.'/ajx/jha/
