Uncertainty over a possible lack of interest rate cuts by the US Federal Reserve this year weighed on the German stock market on Friday. The US government's strong labor market report released in the afternoon helped support this thesis. In the end, the Dax fell by 1.24 percent to 18,175.04 points.

The first weekly loss after eight positive weeks in a row

The string of good labor market data is not stopping, said chief economist Thomas Gitzel of VP Bank. On the one hand, this is positive because the American economy is self-sufficient. On the other hand, good data is also a problem for the Federal Reserve, because the question increasingly arises as to whether interest rate cuts are even necessary. This is not yet the main scenario for market participants, but according to Gitzel, the debate on this is likely to intensify.

On a weekly basis, the leading Dax index lost 1.72 percent; It is the first weekly negative after more than eight consecutive weeks. The MDax of mid-sized stocks lost 1.29 percent to 26,915.13 points on Friday.

New York stock markets fell the day before

The German stock market had already started the day with notable losses after the New York stock markets fell on Thursday. The price losses in the US were triggered by statements by the president of the regional US Federal Reserve Bank in Minneapolis. This triggered concerns about interest rates on Wall Street, which eventually spread to Europe. Fed member Neel Kashkari, currently a non-voting member, had said there might not be a rate cut this year if inflation remained high and growth remained strong.

According to Jürgen Molnar, capital market strategist at Robomarkets, it is the prices that are in the news. After all, “there wasn't much new,” he said. The Federal Reserve repeatedly emphasizes that it makes interest rate cuts dependent on the development of inflation and the strength of the economy.

In the Dax there were almost only losers

In view of the general gloomy mood, there were almost only losers in the Dax. At the top of the index, Deutsche Börse shares gained 0.6 percent. This often benefits from turbulent times in the stock markets, because then trading volume is high.

Major European indices also moved lower. The eurozone's leading index EuroStoxx 50, the French Cac 40 and the British FTSE 100 each lost around one percent. However, the Dow Jones Industrial in New York rose 0.9 percent at the close of European trading.

The euro also fell

The euro fell. The European Central Bank set the reference exchange rate at 1.0841 (Thursday: 1.0852) US dollars. Therefore, the dollar costs 0.9224 (0.9214) euros.

In the bond market, the current yield fell from 2.41 percent the day before to 2.40 percent. The Rex bond index rose 0.04 percent to 125.23 points. The Bund future lost 0.60 percent to 132.2 points.