30 p..m. – about 0.5 % above yesterday’s close. Siemens Energy, Commerzbank and Heidelberg Materials led the gains, while Deutsche Telekom, FMC and RWE slipped to the bottom of the chart.
Andreas Lipkow, chief market analyst at CMC Markets, said investors are pricing in a possible easing of tensions in the energy markets as pressure mounts on Iran. More states are calling for a relaxation of conditions in the Strait of Hormuz, hoping for a political rather than a military resolution. With the Iranian conflict losing its frightening edge for international financial markets, the focus is shifting.
Lipkow noted that the deceleration of oil-price rises is far more critical than the current Brent level hovering just above $100. Earlier, investors had plotted scenarios of $120 to $150 per barrel, but those are now seen as increasingly unlikely. In the DAX, this manifests as a heightened emphasis on banking stocks and a resurgence among automobile manufacturers. Technically the index sits at a threshold that could usher in a more optimistic trading landscape, with the round figure of 24,000 points appearing almost magnetic as a target.
Tonight’s key event is the U.S. Federal Reserve meeting, which will shed light on the policymakers’ view of the U.S. economic outlook and inflation trajectory. Lipkow expects the discussion around potential stagflation to dominate the agenda.
