The DAX, which had begun the day positively on Wednesday, quickly fell into negative territory and remained there until market close. At the end of trading, the index stood at 25,411 points on the Frankfurt stock exchange floor, marking a decline of 0.7 percent compared to the previous day’s closing level.
This downturn followed the dissipation of hopes that the United States and Iran were nearing an agreement in their months-long military conflict, which has severely restricted global energy sources. This geopolitical uncertainty was evident in rising oil prices. Around 5 p.m. Central European Time on Wednesday afternoon, a barrel of North Sea Brent crude cost US$101.70, a 2.4 percent increase from the prior trading day’s close. Simultaneously, bond yields rose, and these factors, coupled with high inflation expectations, proved damaging to the stock market.
Amidst the prevailing negative trend, some stocks performed better. Defense shares from Rheinmetall, among others, gained around three percent shortly before closing, while SAP and the two Fresenius stocks also offered positive returns. However, other companies posted significant losses, with Mercedes, Allianz, and Scout24 falling by three percent or more.
Regarding currency markets, the European common currency weakened on Wednesday afternoon. The Euro traded at US$1.1389, meaning the dollar was available for 0.8780 Euros.
