The German DAX slipped to 23,590 points by the close of Xetra trading on Thursday, down 0.2 % from the previous day’s close. After a weak start the index briefly ticked higher around midday, only to broaden its losses again in the afternoon.
Andreas Lipkow, chief market analyst at CMC Markets, noted that investors are still mainly focused on events in the Middle East and their effect on oil prices. “The current view is that a scenario will unfold where the U.S. and European emergency reserves are drawn down until the war in Iran ends. Whether this actually happens remains completely unclear” Lipkow said. “At least in the short term it helps to stop panic selling on European equity markets. The large hedging positions that were built before the onset of the Iran conflict also act as a buffer that absorbs much of the potential price drop”.
Just before the market closed, shares of Zalando and Brenntag were at the top of the price list, while Heidelberg Materials and Deutsche Bank were at the bottom.
Gas prices rose: a megawatt‑hour (MWh) of gas for April delivery cost 51 €-about 1 % higher than the day before. This level would imply a consumer price of roughly 10-12 cents per kilowatt‑hour (kWh) when taxes and other charges are included, provided the price level stays stable.
Oil prices surged strongly: a barrel of Brent crude was trading at 99.78 USD in the afternoon (around 17:00 German time), an increase of 8.5 % over the previous trading day’s close.
The euro weakened in the afternoon: 1 EUR was worth 1.1527 USD, which equates to 0.8675 EUR for 1 USD.