After the DAX crashed massively, it stabilized on Wednesday. This is supported by promises from Donald Trump to keep the Strait of Hormuz passable.
After the DAX came under massive pressure on Tuesday and even recorded a daily low of 23,601.11 points (-4.2 percent), it began to stabilize on Wednesday. The stock market barometer entered Wednesday trading with an increase of 0.47 percent at 23,901.32 points and remained friendly afterwards.
DAX record last in January
On January 13th, the DAX reached an all-time high of 25,507.79 points, exceeding the 25,500 point threshold for the first time in its history. Ultimately, it ended the day at 25,420.66 points, which was a new record based on the closing price.
Strait of Hormuz should remain passable
On Wednesday, the selling pressure on the German stock market will initially ease somewhat. After the significant losses of the past two days, US President Donald Trump’s promise to protect oil and gas shipments in the Strait of Hormuz with his own navy gives investors slight hope that the energy markets will calm down.
“If necessary, the US Navy will begin escorting tankers through the Strait of Hormuz as soon as possible,” Trump wrote on his Truth Social platform the evening before. At all costs, the United States would ensure the free flow of energy to the rest of the world. He also instructed the responsible development finance authority, DFC, to offer risk insurance and guarantees for all maritime trade in the region.
Asia’s stock markets are rushing downwards
This news had caused the US indices to significantly reduce their losses in New York the evening before. However, a look at East Asia shows that investors on the world stock markets remain very nervous. Because South Korea and Japan depend heavily on oil imports from the Middle East, the stock exchanges there were again under significant pressure on Wednesday. The South Korean leading index Kospi lost double-digit value.
According to market observer Thomas Altmann from QC Partners, the US is trying to calm the situation. “So far, the plan to escort tankers on their way through the Strait of Hormuz has not convinced the stock exchanges,” he commented this morning. It is still too unclear whether this plan can actually be implemented. After a dip the evening before, oil prices rose slightly again on Wednesday.
Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires
