The German market index, the Dax, began trading on Wednesday with gains. As of 9:30 a.m., the benchmark index stood at approximately 24,355 points, marking a 0.3 percent increase from the previous day’s closing level. Leading companies in terms of stock performance were Siemens Energy, Siemens, and Infineon, followed by Deutsche Telekom, Adidas, and Scout24.
Investors reacted cautiously to the extension of the ceasefire in the Iran conflict, as it failed to generate significant enthusiasm. Thomas Altmann of QC Partners noted that this merely extends a period of waiting, as direct negotiations are temporarily suspended while the existing ceasefire remains in effect. He pointed out that while the situation means the US and Iran have gained no ground toward an agreement, the immediate risk of further escalation has also subsided.
Although the markets might appear content with the maintenance of the status quo, Altmann advised investors to look closer. He highlighted the disparity in oil pricing: while the spot price for Brent crude is currently at least 14 percent below its record high from March, the price for a shipment delivered in six months has only dropped by five percent. According to him, even that long-term delivery cost remains 43 percent more expensive than it was at the turn of the year. These developments suggest that energy markets are increasingly pricing in a long and slow return to normal, predicting that high prices will persist for an extended duration, implying that the conflict will continue to impact the global economy and corporate earnings for a considerable time.