The DAX slid steeply on Tuesday as worries over the Middle East intensified. At Xetra’s close the index finished at 23,791 points, down 3.4 % from the previous day’s close.
Investors are especially concerned that rising energy prices-fuelled in part by the Iran conflict-will spark a sharp rebound in inflation. That could prompt rate hikes from the ECB and other central banks, and higher rates are seen as a poison for equities and real estate.
Oil rose sharply: Brent crude was trading at $83.61 a barrel at about 5 p.m. German time on Tuesday, a swing of 7.6 % from the prior close.
Gas for April delivery peaked at roughly €65 per megawatt‑hour, falling to about €54 by the afternoon but still more than 20 % above the day before. Such a wholesale level would imply a consumer gas price of around 11-13 cents per kilowatt‑hour-including ancillary costs and taxes-if the high prices persisted.
Within the DAX, only Deutsche Börse shares managed to avoid the drag; all other constituents fell sharply. Beiersdorf, in particular, had its outlook slashed, projecting only modest growth for the year. By the close the stock had dropped about 20 %.
The euro softened on Tuesday afternoon: one euro fetched $1.1589, so one dollar was worth €0.8629.