FRANKFURT (dpa-AFX) - At the end of a rather strong week, the German stock market is likely to be quiet for the time being on Friday. The X-Dax recently signaled the Dax 0.1 percent higher at 18,462 points. The Eurozone's leading index, the EuroStoxx 50, is also expected to rise by around 0.1 percent.

So far this week, the Dax has risen by more than one per cent, which means that the third week of stabilization beckons. It has largely made up for the massive price correction in mid-June, except for around 100 points, and can even slowly look back towards the May record of 18,892 points.

There is a lack of impetus from Wall Street, as there was no trading on July 4 due to Independence Day. However, the US labor market report will be the highlight of the week this Friday. Following the interest rate turnaround in Europe, it will be checked for signals as to whether the US Federal Reserve will soon be able to follow suit.

Meanwhile, after lengthy negotiations, the leaders of the traffic light coalition have achieved a breakthrough on the 2025 federal budget and the growth package. The package could lead to additional growth of more than half a percent next year, which would mean an additional 26 billion euros in economic output, the German Press Agency learned from coalition circles on Friday. Accelerated depreciation of investments, an improved research allowance and incentives for more employment are planned. The agreement also provides for compliance with the debt brake.

Following the introduction of provisional additional tariffs on electric cars from China, the EU and China are facing intensive negotiations. The parties now have four months to reach a decision as to whether high special levies will be imposed once and for all. According to an investigation by the EU Commission, the entire value chain for electric cars in China is heavily subsidized, which threatens to damage the European automotive industry.

Among the individual stocks, investors are likely to focus on the shares of Porsche AG and Varta. The sports car manufacturer wants to buy the business for electric car batteries from the ailing battery manufacturer. According to Varta, both companies are currently negotiating a possible majority investment in the Varta subsidiary V4Drive. The companies have already signed a non-binding letter of intent. In pre-market trading on the Tradegate trading platform, Varta shares soared by 30 percent compared to the Xetra closing price of the previous day. Porsche AG shares initially stagnated.

Aixtron shares continued their recent recovery despite a gloomy outlook from the semiconductor industry equipment manufacturer. They recently rose by almost 4 percent on Tradegate. After a weak quarter, Aixtron lowered its sales and margin targets for the current year. However, there is hope in the order intake, which stabilized compared to the previous year after a weak start to the year.

In view of the strong order intake and the solid momentum in production systems based on gallium nitride (GaN) and silicon carbide (SiC), the preliminary figures should not be taken too negatively, commented a trader in an initial reaction this morning. In addition, the weak performance of the share since mid-June had apparently already anticipated some negative factors./edh/mis