The German stock market started a phenomenal recovery rally in the middle of the week.
The DAX Already gained strongly at the start of trading and continued to move at a significantly higher level afterwards. While it had ended trading the previous day below 23,000 points, it ultimately gained 5.06 percent to 24,080.63 points on Wednesday.
The TecDAX also started off much more firmly and continued to move in green territory. It closed with a gain of 4.7 percent at 3,586.79 places.
The surprising last-minute agreement on a ceasefire between the USA and Iran caused massive relaxation on the global financial markets on Wednesday. The decisive factor for this diplomatic breakthrough is Pakistan’s mediation, which has already been celebrated as a “gift” by stock market experts. The agreement provides for an immediate and widespread cessation of hostilities, including not only US allies but also Lebanon.
This de-escalation triggered a double-digit percentage drop in oil prices, which have recently served as a primary indicator of global inflation and economic fears. The price of the reference Brent crude temporarily fell below the $92 mark, reaching its lowest level in over two weeks, which noticeably reduced the psychological pressure on the markets.
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The European stock markets showed a clearly positive trend in Wednesday trading.
The EURO STOXX 50 opened clearly in positive territory. Then it continued steeply uphill. His final score: 5,892.15 points (+4.6 percent).
After US President Trump’s surprise announcement of a two-week ceasefire, European stock markets recorded a strong relief rally. The easing of tensions in the Iran conflict caused oil prices and the associated inflation concerns to fall significantly, which at the same time led to falling yields on the bond markets. While economically sensitive sectors and industrial metal stocks benefited from this development, shares of oil companies came under selling pressure.
Despite the short-term euphoria, economists urged caution regarding further interest rate policy. The previous evening, Fed Governor Philip Jefferson referred to a stable US labor market, which makes interest rate cuts in the USA increasingly unlikely – a restrictive stance that the New Zealand central bank also confirmed in the morning with reference to ongoing inflation risks.
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The US stock exchanges were well up.
The Dow Jones gained at the beginning and then picked up even more strongly. At times he was even able to surpass the 48,000 point mark. Ultimately it rose 2.85 percent to 47,909.92 points.
The NASDAQ Composite the session started significantly higher. He also continued to be in the profit zone. Ultimately, there was an increase of 2.8 percent to 22,635.00 jobs.
After the strong price increases in Asia and Europe, the ceasefire in the Iran war now also led to significant gains on the US stock exchanges. There was relief in the markets as oil prices fell noticeably – triggered by the prospect that the Strait of Hormuz blocked by Iran will be reopened. This strategically important strait plays a central role in the global oil– and gas trading. Shortly before the expiration of a recent ultimatum from the US President Donald Trump The USA and Iran agreed on a two-week ceasefire and the opening of the Strait of Hormuz. Israel’s army also confirmed that it had stopped attacks on targets in Iran for the time being. At the same time, Kuwait and the United Arab Emirates reported shelling from Iran, while Tehran reported explosions in the Persian Gulf. However, earlier in the evening, Iran threatened to withdraw from the agreed two-week ceasefire with the US because of Israeli attacks on Hezbollah in Lebanon.
“On the market side, the narrative of a US president who sends out wild threats but does not implement them has been confirmed again,” said DZ Bank analyst Sören Hettler. But it is still too early for lasting euphoria. “Despite the positive signal, the positions of the parties involved are still far apart, which is why the situation remains fragile.”
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The Asian stock exchanges showed a setback on Thursday.
He loses in Tokyo Nikkei 225 temporarily increased by 0.81 percent to 55,853.08 points.
On the Chinese mainland, the Shanghai composite meanwhile 0.73 percent lower at 3,965.70 points.
The Hang Seng fell by 0.35 percent to 25,801.87 points in Hong Kong.
After the euphoric rally of the previous day, disillusionment returned to the East Asian stock markets on Thursday. Prices are falling slightly as market participants become skeptical about the stability of the agreed ceasefire. The two-week ceasefire between the US and Iran is looking increasingly fragile as isolated attacks continue to be reported in the region.
The situation on the strategically important Strait of Hormuz is viewed as particularly critical: Contrary to the central conditions of the agreement, the strait remains largely blocked. Oil tanker traffic has reportedly been halted again, citing continued and even expanded Israeli attacks in Lebanon. Since Iran is demanding that Lebanon be included in the ceasefire – which Washington and Tel Aviv have so far rejected – tensions are escalating again. As a result of this uncertainty, oil prices are also rising again after recovering from their lows the evening before.
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