European equity markets opened cautiously on Friday, with the German benchmark Dax down 0.4% at 25,621 points. The index is still showing a slight weekly gain of about 0.1%. The mid‑cap MDax was virtually unchanged at 31,446 points, and the EuroStoxx 50 fell 0.3%.
Traders cited ongoing Middle East tensions and concerns over oil and gas supplies as reasons for the cautious sentiment, although oil prices had eased slightly overnight. The approaching "big expiry" day – when futures and options on equity indices and single stocks expire – could amplify price swings as market participants adjust positions before contract deadlines.
Among individual stocks, Infineon led the Dax with a 3.4% rise after Oddo BHF upgraded its rating from "Neutral" to "Outperform", citing an improving business outlook that extends to 2027. Other semiconductor names also advanced: Siltronic, the best performer in the MDax, climbed 6.4% to roughly 74 euros, prompting UBS to raise its price target from 105 to 120 euros. Aixtron, Suss Microtec and Jenoptik each gained up to 2.8%.
In contrast, Deutsche Telekom shares dropped 3.4% following a negative analyst note on French rival Orange, pushing the stock to its lowest level since early August and making it the worst performer in the Dax.
Defence‑related stocks benefited from upgrades: Renk rose 2.4% after Goldman Sachs moved its rating from "Neutral" to "Buy", with analyst Sam Burgess highlighting the stock’s predictable earnings growth. Vincorion added 3.1% after Oddo BHF also lifted its rating to "Outperform", with analyst Aurelien Sivignion noting greater visibility in the firm’s energy and mechatronics business for defence platforms.
The note also mentioned that market attention remains on the recent US Federal Reserve rate increase – the first in three years – and on the Bank of Japan’s expected further tightening of its policy rate on Friday.
