The German stock index, the Dax, started the trading day weakly on Wednesday. At around 9:30 AM, the leading index was calculated at approximately 25,905 points, which was down 0.4 percent from the close of the previous trading day. Among the top-performing companies, SAP, RWE, and Eon led the way, while Rheinmetall, Airbus, and Deutsche Börse finished the ranking.
Geopolitical tension remains a major factor, with Thomas Altmann of QC Partners stating that “the escalation spiral between the United States and Iran continues.” Following mutual attacks, Brent crude oil is currently trading just slightly below the $100 mark, a price not seen since May.
Altmann noted that while investors still hope for a quick termination of this renewed escalation on the stock market, nervousness is increasing. Consequently, the willingness to buy risk assets like equities has noticeably diminished recently. He added that the current stability of stock markets is more due to small profit-taking operations than significant new purchases.
Regarding commodities, the price of North Sea Brent crude oil saw a sharp rise. Around nine AM German time, a barrel of Brent sold for $100.00, representing a 2.2 percent increase from the previous day’s close.
Meanwhile, the European common currency showed some strength at the start of Wednesday. The Euro traded at $1.1644 against the US Dollar, making the dollar available for 0.8588 Euros.
