Investors are not taking cover in the middle of the week despite the extension of the ceasefire in the Middle East conflict.
The DAX entered Wednesday trading with a gain of 0.42 percent at 24,373.41 points. However, the profits then shrank again and the German benchmark index moved around the zero line. This means that the impasse continues at an elevated price level on the German stock market.
Ceasefire extended
US President Donald Trump surprisingly unilaterally declared the ceasefire with Iran to be extended at the last minute. At Pakistan’s request, he will refrain from attacks until the leadership in Iran submits a “united proposal” to end the war, Washington said. However, the US naval blockade of Iranian ports will continue.
US Vice President JD Vance has canceled his trip to Islamabad indefinitely, according to a White House official, citing US President Trump’s announcement of an extension of the ceasefire. The trip planned for Tuesday has been canceled, the representative said, with no new date set.
“The moment of waiting is being extended,” said Thomas Altmann from QC Partners this morning. Personal conversations were initially canceled. At the same time, the existing ceasefire continues to apply. “This means that the USA and Iran are no closer to reaching an agreement. However, there is no further escalation for the time being,” said the portfolio manager.
DAX record last in January
Despite the recent recovery on the German stock market, the gap to record levels remains. 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.
Evelyn Schmal, Carolin Ludwig, finanzen.net editorial team with material from dpa-AFX and Dow Jones Newswires
