The DAX opened Thursday with slight price declines. Around 9:30 AM, the benchmark index was calculated at approximately 25,145 points, marking a 0.1 percent drop from the previous day’s closing level. Leading the gains on the price list were Infineon, Rheinmetall, and Adidas, while Bayer, Hannover Rück, and Siemens Energy finished lower.
Jochen Stanzl, Chief Market Analyst at Consorsbank, commented that “unclarity over how the Middle East conflict will develop in the short term is making investors nervous on the Frankfurt floor”. He noted that the hopes for peace, which had nearly pushed the DAX to a record high, were being dampened by new reciprocal attacks. Furthermore, investors seemed less certain that the oil price would stabilize below $100 that morning.
Stanzl added that while the DAX had risen sharply in May, the investors’ expectations for the negotiations in the Middle East conflict had risen alongside it. Many had anticipated a quick resolution, making setbacks like mutual attacks undesirable. “Without clear progress in the peace negotiations, the DAX rally will likely pause for the time being” he stated. The growing geopolitical risk has negated the expectations of buyers.
Meanwhile, the European common currency was slightly weaker on Thursday morning; the Euro exchanged for 1.1613 US dollars, meaning the dollar was available for 0.8611 Euros.
In contrast, the price of oil rose, with a barrel of North Sea Brent crude costing $96.82 at 9 AM Central European Time, representing a 2.7 percent increase compared to the close of the previous trading day.
