After significant losses in recent days, the DAX is set for a strong recovery on Wednesday after the US and Iran agreed on a ceasefire.
The DAX is likely to benefit from the agreement between the USA and Iran on a ceasefire and rise sharply on Wednesday. He could regain the round mark of 24,000 points.
Meanwhile, the stock exchanges in Asia are already rising sharply. The Japanese leading index Nikkei climbed by more than 5 percent to the level at the beginning of March.
Investors celebrate ceasefire in the Iran war and collapse in oil prices
The last-minute agreement between the United States and Iran on a ceasefire brought enormous relief to investors worldwide on Wednesday – especially thanks to the massive collapse in oil prices. Several stock exchangers spoke of a “gift from Pakistan”. Iran’s neighbor brokered a wide-ranging, immediate ceasefire that also applies to US allies and extends to Lebanon.
As a result, oil prices fell by double-digit percentages. They are currently the most important indicator of inflation and economic concerns on the market. The price for a barrel of North Sea Brent temporarily fell below $92, its lowest level in more than two weeks.
What is particularly important for global markets is that Iran now wants to reopen the Strait of Hormuz to shipping traffic. The strait is one of the world’s most important transport routes – and not just for energy. Their opening was the US condition for a ceasefire.
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.
Benedict Kurschat, Melanie Schürmann, Evelyn Schmal, Martina Köhler, Julia Walter, finanzen.net editorial team with material from dpa-AFX and Dow Jones Newswires
