European Stock Markets and Currencies Experience a Boost as Tensions Ease in the Middle East
The German Dax index closed the week on a high note, with a 1.3 percent increase compared to the previous day’s close, reaching a value of 23,351 points at the Xetra trading close. Airbus, Commerzbank and Eon led the pack of gainers, with Bayer, Symrise and Brenntag following closely behind.
Market expert Andreas Lipkow attributed the positive sentiment to the easing of tensions in the Middle East, particularly between Israel and Iran, which has had a noticeable impact on European stock indexes. The United States’ decision to step back from military involvement in the conflict has been met with relief on the financial markets, with oil prices already reflecting the shift, having dropped by as much as 3 percent. The appetite for German stocks has also increased, Lipkow noted.
The euro, the common currency of the European Union, strengthened on Friday afternoon, with one euro equivalent to 1.1522 US dollars and one US dollar worth 0.8679 euros.
Meanwhile, the price of oil plummeted, with a barrel of North Sea Brent crude trading at 76.48 US dollars at 5 pm German time, a decrease of 237 cents or 3.0 percent from the previous day’s close.