FRANKFURT (dpa-AFX) – The German stock market made a spectacular U-turn on Monday following US President Donald Trump’s statements on the Iran war and closed much more firmly. Trump ordered that previously threatened attacks on Iranian power plants and energy infrastructure be waived over the next five days. This is the result of “very good and productive discussions about a full and final settlement of our hostilities” over the past two days, he wrote on his Truth Social platform.
However, the fact that Iran denied negotiations with the USA dampened the euphoria in the market somewhat: after an initial price increase of more than 3.5 percent, the DAX collapsed in the afternoon and closed up 1.22 percent at 22,653.86 points. By midday, the leading German index had fallen steeply. The fluctuation range of almost six percent during trading is the largest since the interim low on April 7, 2025 in the wake of Trump’s tariff shock. The MDAX of medium-sized companies ultimately rose by 1.56 percent to 28,229.36 points on Monday.
There was also a noticeable recovery on most of Europe’s other important stock exchanges. The Eurozone leading index EuroStoxx 50 rose by around 1.3 percent. Outside the euro area, however, there was a mixed trend: while the stock exchange in London (FTSE 100) fell slightly, that in Zurich (SMI) turned moderately positive. In New York, the Dow Jones Industrial rose by around 1.0 percent at the European market close.
On the positive side, it should be noted that the USA still seems to be interested in a “deal”, commented analyst Sören Hettler from DZ Bank. And the strong market reaction makes it clear that the capital markets are ready to “look more positively into the future again, provided that tangible signs of relaxation emerge.” Nevertheless, market participants remained cautious, as a solution to the conflict – especially after the Iranian denial – was “anything but dry so far,” said Hettler.
“Trump’s announcement acts as a balm for the markets and thus as a classic temporary calming pill,” wrote market analyst Timo Emden. The principle of hope clearly dominates. Investors are betting on a diplomatic solution to the Middle East conflict. But they “should remember that postponed does not mean canceled,” warned the expert. “The geopolitical risks remain and with them the danger that the markets will quickly give up their current recovery.”
The sudden turnaround was also reflected in oil prices and the price development of some of the previous industry losers. The price for a barrel (159 liters) of Brent crude oil, which is the key North Sea variety for Europe, fell significantly.
European raw material stocks, which had been hit by Trump’s statements, turned significantly higher, while the real estate index ultimately remained clearly in the red.
The shares of the Salzgitter steel group – previously at the bottom of the MDax with minus 10 percent – ultimately gained 1.4 percent. The index climber presented full annual figures and fell short of expectations with its proposal for an unchanged dividend of 20 cents per share. The shares of the industrial and steel group thyssenkrupp gained around 3.1 percent.
In the Dax, the stock of the residential real estate group Vonovia (Vanovia SE) was one of the weakest stocks, despite a decline that was contained to 2.1 percent. In the MDax, LEG (LEG Immobilien) lost 1.4 percent, while TAG Immobilien gained 0.6 percent.
In the SDAX small cap index, Gerresheimer remained the biggest loser with a loss of 12.7 percent. On Friday, the packaging manufacturer’s shares jumped thanks to the takeover fantasy.
The sale of its food delivery business Foodpanda in Taiwan gave Delivery Hero an increase of 7.9 percent in the MDax. JPMorgan analyst Marcus Diebel sees the price of $600 million in cash that competitor Grab wants to pay well above market expectations. Last week, Delivery Hero shares sank to a record low./edh/jha/
— By Eduard Holetic, dpa-AFX —
