Yesterday evening, urgent news reported that Iran had attacked US military bases in the region. Tehran had previously informed both the United States and the nations hosting the targeted military bases. Ultimately, this appears to be a symbolic retaliatory strike, potentially paving the way for negotiations. Furthermore, Israel communicated its intention to cease weekend attacks. It seems the situation in the Middle East is de-escalating.
Strait of Hormuz Likely to Remain Open – A Boost for Stock Markets
This news is positive for the markets, and the potential for a wider Iran conflict should now be fully priced in, barring any unforeseen events not currently anticipated by investors. The Iranian government's decision to take this measured step, ensuring the Strait of Hormuz remains open for shipping, is also a positive development for the markets. This provides additional relief for stock markets and the price of oil.
Following the attacks, the DAX opened with a downward gap at the start of the week. However, this dip was immediately bought by market participants, and the upward trend, which began after a negative daily close, continued into after-hours trading with the US markets. Investors are looking ahead to the rest of the trading week with optimism, as it could potentially conclude on a positive note.
Limited Movement in Individual Stocks – RWE Leads with a Modest 1.7% Gain
Among individual stocks, RWE shares led the day with a performance of 1.7%, followed by Deutsche Telekom with a gain of 1.6%, and Infineon, which saw a profit of just 1.1%. On the other end of the DAX list, Münchener Rück shares recorded a loss of 3.1%. The bottom three were completed by Sartorius and Brenntag shares, which, with declines of 2.5% and 2.3% respectively, disappointed their investors on this particular day.
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