The DAX began trading on Wednesday with slight gains. Around 9:30 a.m., the leading index was calculated at approximately 25,060 points, representing a 0.2 percent increase over the previous day’s closing level. Among the top performers were Gea, Airbus, and MTU, while Scout24, Hochtief, and Continental finished lower.
Oil prices surged significantly as well. A barrel of Brent crude from the North Sea cost $93.31 against the German time zone around 9 a.m. on Wednesday, marking a 2.5 percent increase from the end of the previous trading day. Thomas Altmann of QC Partners commented that “$93 is equivalent to a six-week high,” adding that tensions are escalating. He noted that the impact of a blockade of Saudi Arabian oil exports in the Red Sea has likely not yet been priced into the current $93 oil price. The renewed climb in oil and gas prices is fueling renewed inflationary fears and causing corresponding increases in interest rates.
Altmann observed that stock markets are reacting “surprisingly calmly” to the current escalation. This calmness is mainly driven by the hope that the escalating tensions will end quickly and that dialogue will resume. However, he cautioned that the longer the escalation continues, the less likely the markets are to absorb this dangerous combination of rising energy and increased financing costs.
The DAX had recently reclaimed the psychologically important 25,000 mark, but the analyst noted that trading volumes were below average. He suggested this quietness was not solely due to the seasonal summer effect; many are currently waiting to see how the German reporting season begins and how the Iran conflict develops. The prevailing sentiment is one of intense fear of being caught unprepared.
The Euro strengthened slightly in the morning. One Euro fetched $1.1412, meaning the Dollar was available for 0.8763 Euros.
