The German stock index, the Dax, began trading on Thursday session with losses. Around 9:30 a.m., the leading index was calculated at approximately 23,850 points, marking a 1.0 percent drop compared to the previous day’s closing level. Among the top performers on the day’s quoted list were BASF, Brenntag, and Eon, while Rheinmetall, SAP, and Siemens Energy finished at the bottom.
Market observers remain focused on the fragile ceasefire between the US and Iran. According to Jochen Stanzl, Chief Market Analyst at Consorsbank, “It was already expected that the negotiations between Iran and the US would be marked by fluctuations and setbacks”. He noted that the initial demands are maximalist, suggesting that reaching an agreement is unlikely to be a straightforward process given the points raised. Stanzl added that the current ceasefire appears to be motivated by political pressure exerted on US President Trump-among other factors related to the upcoming midterm elections-which increases the chances of a final settlement.
The analyst also conveyed that investors are patiently anticipating a scenario where the ceasefire ultimately holds firm. He reasoned that the probability of the Strait of Hormuz reopening completely has increased. Given the overall low positioning in the stock market, a significant recovery is likely, and in the event of a stable truce, a breakout to new highs might even occur.
Meanwhile, the European common currency showed some weakness on Thursday morning: the Euro cost 1.1661 US dollars, meaning a dollar was available for 0.8576 Euros. Furthermore, oil prices rebounded. A barrel of North Sea Brent crude cost $97.75 around 9 a.m. German time, representing a 3.2 percent increase over the previous day’s close.
