30 AM, marking a 0..8% decrease from the previous day’s closing level. Market analysts attribute this weakness to the dashed hopes of peace in the Middle East. According to Andreas Lipkow, Chief Market Analyst at CMC Markets, the excitement surrounding a resolution in the region ended with mutual attacks in the Strait of Hormuz. This geopolitical tension quickly impacted the oil market and, subsequently, the stock exchanges. The Nord Sea grade Brent crude oil has returned to $104 per barrel, causing the DAX to falter after its recent recovery.
Despite the setback, underlying hopes for a quick resolution persist. While Asian markets showed some weakness, these indices could still indicate potential for gains over the coming week. For instance, the Nikkei and KOSPI indices were down only between 1.5% and 2%, largely influenced by profit-taking, particularly in technology stocks.
Lipkow suggests that this pattern is likely to repeat for Europe and the DAX, as the risk of being caught off guard increases over the upcoming weekend. He notes that the general situation remains opaque, whether positive or negative, and there is no immediate clarity expected.
Looking ahead, the day’s focus for corporate activity revolves around quarterly results from companies including Commerzbank, Krones, and Evonik. On the macroeconomic front, attention is turning toward US labor data, US inventory statistics, and consumer confidence indices from the University of Michigan. He predicts a generally nervous trading day for Frankfurt, with the DAX potentially ranging between 24,300 and 24,600 points.
In commodity movements, the gold price gained significantly, costing $4,741 for a fine ounce in the morning (a gain of 1.1%), equating to €129.55 per gram. Conversely, the price of Brent crude oil dropped sharply, falling to $100.10 per barrel at 9 AM German time-a reduction of 1.2% compared to the previous close.
In currency terms, the Euro started the week slightly stronger, trading at $1.1765 per Euro. Correspondingly, the US Dollar was valued at €0.8500.
