The German DAX started the trading day on Thursday in decline. Around 9:30 AM, the leading index was calculated at approximately 23,850 points, representing a 1.0 percent drop from the previous day’s closing level. Among the top gainers were BASF, Brenntag, and Eon, while Rheinmetall, SAP, and Siemens Energy finished in the top losing positions.
The fragile détente between the United States and Iran remains a key focus for investors. Jochen Stanzl, Chief Market Analyst at Consorsbank, commented that the negotiations between Iran and the U.S. were expected to be marked by ups and downs. According to him, initial demands are maximalist, and reaching an agreement is unlikely to be a straightforward process given the current points. He noted that the ceasefire appears to be motivated by political pressure on US President Trump-partly in the run-up to midterm elections-which increases the chances of a final settlement.
The analyst added that investors are patiently anticipating a scenario where the truce holds. He pointed out that the probability of the Strait of Hormuz reopening completely has increased. Given the low overall positioning in the stock market, a significant recovery is probable, and in the event of a stable ceasefire, even a breakout to new highs is possible.
Meanwhile, the European common currency was slightly weaker on Thursday morning; one Euro cost $1.1661, and consequently, a dollar weighed 0.8576 Euros.
Oil prices increased again. Around 9 AM German time, a barrel of Brent crude from the North Sea cost $97.75, marking a 3.2 percent rise compared to the previous day’s close.