The DAX opened on Wednesday with losses. At approximately 9:30 a.m., the benchmark index was calculated at about 25,915 points, marking a decrease of 0.2 percent compared to the previous trading day’s closing level. Top performers included Deutsche Bank, Commerzbank, and Adidas, while the laggards were Gea, Scout24, and Volkswagen.
Thomas Altmann of QC Partners noted that the escalating crisis continues, stating, “The spiral of escalation is running its course. We are currently witnessing a dangerous cycle of military and retaliatory actions.” After an initial period of calm, the renewed escalation in the Middle East is now generating increasing apprehension in the stock markets.
Altmann detailed the core economic pressures: “We are facing rising energy prices and growing inflation concerns, which are causing stock and bond prices to plummet. The gas price is now higher than it has been since 2023. Such increases in energy costs will inevitably lead to a new wave of inflation,” he added. This inflationary pressure is already being priced in by the market through higher interest rates. Specifically, the yield on five-year German Bunds surpassed the three percent mark for the first time since 2008.
The renewed concerns are now strongly affecting the DAX. Altmann observed that for the first time in two months, the German benchmark index dropped by over one percent on two consecutive days, an event that signals the beginning of widely anticipated profit-taking. It remains to be seen how investors will react to the psychological barrier of the 10,000-point mark.
In other markets, the European common currency traded slightly weaker on Wednesday morning; the Euro cost 1.1573 US dollars, meaning the dollar was exchangeable for 0.8641 Euros. Meanwhile, the price of oil rose, with a barrel of North Sea Brent crude costing $94.86 against 9:00 a.m. German time-an increase of 21 cents, or 0.2 percent, from the previous day’s close.
