New hope for an end to the Iran war: DAX is rising strongly – big gains on the Nikkei too

At the opening, the DAX showed a whopping increase of 2.85 percent to 23,326.89 points. Even after that, he remains in the black.

Before the Easter holidays, sales are still expected to be manageable, as there will be no trading on the Frankfurt Stock Exchange next Friday or Monday.

23,000 point mark passed

A buying mood dominates the German stock market in the middle of the week. The driving force is the growing optimism that military tensions in Iran will end soon. Investors are betting that diplomatic rapprochements and a possible stabilization of trade routes will ease the strain on the global economy. This drives the German leading index over the 23,000 point mark.

Political detente is also driving prices in the Far East and on Wall Street

After the markets in the USA on Tuesday evening, the Asian stock markets also set off a real fireworks display on Wednesday, driven by the hope of an early end to the conflict in Iran. This was particularly clear in Japan: the Nikkei gained 5.24 percent to 53,739.68 points. According to analysts at UOB, the diplomatic rapprochement is generating massive optimism after both US President Donald Trump and the Iranian government expressed a desire to end hostilities. Trump said that US forces could leave the country in two to three weeks as the goal of eliminating the nuclear threat had been achieved. This development is accompanied by Iranian Foreign Minister Abbas Araghchi’s confirmation of direct contacts with US special envoy Steve Witkoff – a clear signal, even if Tehran does not yet want to officially confirm formal negotiations. At the same time, pressure on the Strait of Hormuz is growing: the United Arab Emirates is reportedly preparing to support the US in opening the sea route by force.

The situation on the oil market remains under observation

However, the situation on the oil market is still characterized by caution. As long as the Strait of Hormuz is not completely navigable, prices will remain vulnerable to fluctuations despite the political relaxation. This means that oil prices, which continue to rise, remain an indicator of investors’ economic and inflation concerns. Experts assume that investors will continue to buy in the event of a price setback.

DAX record from January a long way off

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.

Claudia Stephan, Alexandra Hesse, Melanie Schürmann, Benedict Kurschat, finanzen.net editorial team with material from dpa-AFX and Dow Jones Newswires