Stock Market Slumps as Investors Eye Middle East Tensions
The German Dax index closed lower on Thursday, with a decline of 1.1 percent from the previous day’s close, as the market reacted to the escalating tensions in the Middle East. The index, which tracks the performance of the 40 largest German companies, closed at 23,057 points, a decline of 254 points from the previous day’s close.
Market analysts attributed the decline to the uncertainty surrounding the Middle East situation, with many investors opting for safe-haven assets rather than taking on risk. “The mood remains tense and the approaching weekend won’t help either” said Andreas Lipkow, a market analyst. “Investors are more concerned about a potential escalation over the weekend and the lack of opportunity to react to events.”
The Sartorius shares bucked the trend, leading the gains, while Zalando’s shares closed at the bottom of the list. The gas price also rose significantly, with a megawatt-hour of gas for delivery in July costing 42 euros, a 7 percent increase from the previous day. This would translate to a minimum consumer price of around 9 to 11 cents per kilowatt-hour, including additional costs and taxes, if the price remains stable.
The oil price also surged, with a barrel of Brent crude oil costing 78.70 US dollars at 5 pm German time, a 2.6 percent increase from the previous day’s close. The euro, the European Union’s common currency, was slightly weaker, with one euro equivalent to 1.1467 US dollars and one US dollar equivalent to 0.8721 euros.