The German DAX began the trading day on Wednesday in the red. The index was quoted at roughly 23,675 points at 09:30, a fall of about 1.2 % from the close of the previous day. Brenntag, Merck and FMC were the strongest performers, while Henkel, Rheinmetall and SAP ended up at the bottom of the list.
Thomas Altmann of QC Partners warned that market sentiment remains volatile and is expected to stay that way for a while. He said investors are keeping a close eye on developments in the Strait of Hormuz, noting that in the past seven days only one ship has passed through the strait in each direction, which keeps newly extracted oil a scarce commodity.
At the same time, Altmann pointed out that the prospect of releasing strategic oil reserves is reassuring the markets. Many traders are adopting a “wait‑and‑see” stance, and the DAX’s trading yesterday was the lowest turnover volume seen so far this year, underscoring the fear of mis‑positioning.
Later in the afternoon the focus will shift to the U.S. February inflation reading. Analysts expect the annual rate to hold steady at 2.4 %. The higher energy costs stemming from the Iran conflict have not yet been reflected in the February figures.
On the currency front, the euro was slightly stronger on Wednesday morning: one euro bought $1.1616, and one dollar traded at €0.8609.
Meanwhile, oil prices spiked again. At 09:00 German time a barrel of Brent crude was trading at $89.64, up 2.1 % from the previous day’s closing level.