The DAX dropped sharply on Thursday, closing at 22,840 points on the Xetra exchange-a 2.8 percent fall from the day before. Until shortly before the market closed, only shares of the Deutsche Börse Group managed to escape the downward spiral, posting about a 0.3 percent gain, while all other stocks slipped sharply. The biggest loser was Von O‑VIA, which fell 12 percent. Real‑estate firms could suffer further if the ECB raises rates again to curb a potential rise in inflation; a billion‑euro profit that was recently reported could be wiped out by looming write‑downs.
Investor sentiment is increasingly shaped by expectations that a conflict in the Middle East will continue and that energy prices will stay stubbornly high. The war in Iran has already damaged infrastructure to a considerable extent, which could hamper production even if the fighting quickly subsides.
Gas prices surged about 14 percent on Thursday. An hour later, the cost for a megawatt‑hour of gas in April was around €62, implying a consumer price of roughly 11-14 cents per kilowatt‑hour-including taxes and fees-if the level remains persistent. Oil also rose sharply for its circumstances: an April‑delivery Brent barrel cost about $110.70 by 5 p.m. German time, up 3.1 percent from the previous close.
The euro strengthened as well on Thursday afternoon: one euro was worth $1.1534, and one U.S. dollar could be exchanged for €0.8670.
