30 a..m., which represented a drop of 0.8 percent compared to the previous day’s close.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, the initial optimism regarding a potential Middle East peace was tempered by market movements. Since tensions flared following mutual attacks in the Strait of Hormuz, the oil markets reacted immediately, and the equities market followed suit. Brent crude oil has returned to $104 per barrel, causing the DAX to lose steam and retract after its mid-week recovery.
Although hopes for a swift resolution to the conflict persist, investors are exhibiting caution. European and German markets are expected to reflect similar trends. The primary risk going into the weekend is being caught off guard, whether positive or negative. Lipkow noted that the political negotiation situation remains unclear and unlikely to resolve quickly.
Domestically, the focus for the day’s trading agenda includes quarterly earnings reports from companies like Commerzbank, Krones, and Evonik. On the macro level, attention shifts to US labor market data, US inventories, and consumer confidence indices from the University of Michigan. Lipkow predicts a generally nervous trading day for the DAX, forecasting a potential trading range between 24,300 and 24,600 points.
Looking at Asia, stock markets showed some weakness, although they might sustain a weekly rise. The Nikkei and KOSPI indices saw declines of only 1.5 to 2 percent, largely attributed to profit-taking in technology stocks.
In currency and commodity markets, the Euro started the day slightly stronger, trading at $1.1765 per Euro (meaning a Dollar cost 0.8500 Euros). Meanwhile, the price of gold benefited significantly, climbing by 1.1 percent by morning to $4,741 per fine ounce, equivalent to 129.55 Euros per gram. Conversely, oil prices fell sharply. Brent crude started the day around 9:00 a.m. for $100.10 per barrel, representing a 1.2 percent or 121 cent decrease from the previous session’s closing price.