Financial Markets Edge Up as Tensions in the Middle East Ease
The German Dax index maintained its positive trend throughout the day, with a mid-day reading of around 23,255 points, a 0.9 percent increase over the previous day’s close. Most Dax stocks were in the green, with notable gains for Porsche, Infineon and Volkswagen shares.
Market analyst Andreas Lipkow attributed the more optimistic market sentiment to the changed political situation in the Middle East. “The US has decided to delay its military intervention in Iran by two weeks and that’s helping to calm the markets” he said. The decision has a positive impact on European financial markets, which are heavily influenced by energy prices. Oil prices, in turn, have dropped by around two percent in early trading, a development that had already led to small gains in Asian markets earlier in the day.
The trading day is likely to be characterized by caution, with the upcoming weekend not expected to prompt significant buying or selling on the financial markets. Additionally, several key economic indicators from the US are due to be released later in the day, according to Lipkow.
The euro was stronger against the US dollar, with one euro equivalent to 1.1526 US dollars and one US dollar to 0.8676 euros. Meanwhile, oil prices plummeted, with a barrel of North Sea Brent crude trading at around 76.95 US dollars at midday, a decline of 2.4 percent from the previous day’s close, or 190 cents.