FRANKFURT (dpa-AFX) - Following weak cues from Asia, the Dax is expected to surrender its previous day's gains on Friday. Broker IG pegged the German benchmark index 0.6 percent lower at 24,785 points approximately two and a half hours before the Xetra open. This brings the 21-day moving average, currently at 24,695 points, back into play.
Semiconductor stocks, in particular, are suffering from profit-taking following their AI-driven rally - initially in the US and now in Japan and South Korea. The South Korean KOSPI, which has already doubled over the course of the year, is shedding 5 percent. Broadcom shares tumbled by double digits the previous day after its outlook disappointed investors' now exorbitant expectations. The US semiconductor sector index (SOXX) briefly lost over 6 percent at its record level before some bargain hunters stepped back in.
Market expert Stephen Innes, citing an analysis by BNP Paribas, highlighted the significance of the upcoming SpaceX IPO. The liquidity flowing toward it could become a genuine litmus test for the AI rally.
The US labor market report for May is due in the afternoon. For analysts at ING, the unemployment rate is currently the primary focus. They expect it to remain at a low 4.3 percent. Should that materialize, the market could effectively check the report off its list./ag
