The DAX began trading on Monday with modest losses. By 9:30 AM, the leading index had registered approximately 24,310 points, marking a 0.1 percent decline compared to the closing level of Friday. On the quote list, SAP, Infineon, and Commerzbank led the way, while Gea, Hannover Rück, and MTU were positioned towards the lower end.
Commenting on the market movement, Thomas Altmann of QC Partners noted that the difficulties between the US and Iran remain high following the recent peace proposal, suggesting that lasting peace is still a distant prospect. He warned that the markets had previously priced in a quick resolution, and now that notion is being unwound. “Oil prices are rising again, and at the same time, interest rates are increasing” Altmann stated. “The euphoria is fading, and risk aversion is mounting again. The longer this drawn-out situation between the conflict states persists, the greater the impact on the global economy”.
Regarding vulnerability, the DAX had lost more than one percent on each of the previous two trading days, bringing it closer to the critical 200-day trend line. Altmann cautioned that a further breach of this important line would likely be interpreted as a negative signal by many investors and those relying on technical modeling.
