30 a..m., slightly below Friday’s closing level. At the top of the daily leaders list was Commerzbank, while Unicredit had presented a takeover bid for the bank earlier that day, a move that seemed well received by investors.
Consorsbank’s chief market analyst, Jochen Stanzl, said: “This is the first of three war weeks that begins for the DAX without major price declines. The markets are merely looking for stability-nothing more. There is no sense of optimism or optimism. Investors are banking on talks between Washington and Tehran, hoping that tankers will again sail through the Strait of Hormuz. There is a lot of expectation and little certainty. For a sustainable recovery of DAX prices that is probably still insufficient”.
He added: “It is still a strong signal that the DAX has not fallen back below the low of the previous week-below 23,000 points. That keeps the idea alive that the Iran war could ease in the foreseeable future. At the same time, doubt grows about whether Tehran will quickly give up the pressure it applies to the Strait of Hormuz. Investors will now look for any sign that the conflict is losing weight, or whether the spiral is continuing-towards targeted attacks on tankers or on infrastructure that is critical for oil flow”.
Stanzl explained that while President Trump is trying to rally neutral states to protect the Strait, Iran declares that it will continue to allow tankers headed to neutral countries to pass through, a stance that could lower many states’ willingness to engage. “Words are countered by other words. It is less than peace, but more than mere escalation” he said. “Talks could give markets time to calm. Only in an environment of fading volatility can a stable base form. Only then will large investors return. For the DAX that means an increase above 24,100 points would be a technical sign of a base forming-but only if it is not followed again by new lows. However, investors will not return to risk solely on market mechanics. It will take clarity and real de-escalation. So far neither is evident”.
On Monday morning the euro was slightly stronger: one euro equalled $1.1443, and one dollar could be bought for €0.8739. Gold slipped, trading at $5,002 per fine ounce, down 0.5 % and priced at €140.53 per gram. Meanwhile, oil climbed sharply; a barrel of Brent crude was worth $106.20 at around 9 a.m. German time, up 3.0 % from the previous closing level.
