In view of significantly falling oil prices, the German leading index managed to jump significantly above the 25,000 point mark on Whit Monday.
The DAX started trading higher on Whit Monday and continued to rise afterwards. In doing so, he continued to leave behind the round mark of 25,000 points, which he had last overcome two and a half weeks ago. During trading, the German leading index also reached its highest level since the day before the war in Iran began at the end of February. The record high of 25,507.79 points was also getting closer and closer. Most recently there was an increase of 2.01 percent to 25,389.10 points on the price board.
The MDAX also temporarily climbed to its highest level in more than four years on Monday, while the SDAX reached a new record high of 18,931.18 points.
However, trading on the reporting day was very quiet overall due to the Whitsun holiday, with thin volumes. Many market participants will only intervene again on Tuesday. The stock exchanges will remain closed on Monday in Denmark, Great Britain, Norway, Switzerland and the USA.
Trump: framework agreement with Tehran ahead
According to President Trump, the United States is close to a framework agreement with Tehran and the reopening of the Strait of Hormuz in efforts to end the Iran war. It was “largely” negotiated, Trump wrote on the Truth Social platform over the weekend. However, he also dampened hopes for a quick agreement: “The negotiations are proceeding in an orderly and constructive manner, and I have instructed my representatives not to rush the deal because time is on our side.” There is “no rush”. Both sides would have to take their time. “There can be no mistakes!”
Iran says it will only negotiate its nuclear program after a framework agreement has been concluded. Foreign Ministry spokesman Ismail Baghai told press representatives that “the details of the nuclear program are not currently being discussed.” The framework agreement is referred to by the negotiators as a memorandum of understanding and should consist of 14 points. “This 14-point agreement focuses on ending the war, and should this agreement be reached, discussions will also be held on issues related to the nuclear program within a period of 60 days,” Baghai said.
Investors more confident again – but for how long?
“The markets are currently undergoing a rapid change: they are no longer pricing in geopolitical fears, but rather a potential peace dividend,” wrote market observer Stephen Innes of SPI Asset Management. With the falling oil price there is also hope among investors that the inflationary effect of the oil price will diminish.
The US indices S&P 500 and NASDAQ 100 remained just below their records on Friday. In Tokyo, the Nikkei 225 exceeded the 65,000 mark for the first time in Monday trading.
According to market analyst Timo Emden, skepticism among investors is likely to continue. Too often, investors recently assumed supposed progress before new threats or geopolitical setbacks caused disappointment. “The decisive factor will probably be whether the political signals are actually followed by reliable agreements this time,” said Emden. The DAX is likely to continue to walk a fine line between a relief rally and uncertainty.
DAX record last in January
The gap to record levels on the German stock market is narrowing again. On January 13th, the DAX reached an all-time high of 25,507.79 points. Ultimately, it ended trading that day at 25,420.66 points, which also set a record based on the closing price.
Carolin Ludwig, Melanie Schürmann, finanzen.net editorial team with material from dpa-AFX and Dow Jones Newswires