The leading German index opened 0.4 percent higher at 15,203 points on Friday. According to analysts, the decision of the US Federal Reserve meeting on Wednesday was still having an effect. As expected, the Fed paused interest rates again. The subsequent statements by Fed Chairman Jerome Powell fueled hopes of a definitive end to monetary tightening.

"In the next step, the DAX will have to defend its gains against today's labor market data from the USA," said Jochen Stanzl, chief analyst at broker CMC Markets. These would be the key to the equity rally: if they are weak, the rise could continue. On the other hand, another strong labor market report could lead to new interest rate fears. The Fed is trying to keep inflation in check and cool down the hot job market by raising interest rates.

For companies, the balance sheet season continued. Vonovia, among others, was in demand with a 3.5 percent jump in its share price. The real estate giant will continue to be burdened by the consequences of high interest rates in the coming year. Group CEO Rolf Buch said, however, that Vonovia is in a position to manage its debt without a capital increase. Meanwhile, the Munich-based car manufacturer BMW achieved higher sales in the past quarter. The share price climbed by almost three percent.

(Report by Zuzanna Szymanska, edited by Christian Rüttger. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)