Dax aktuell: Dax schließt auf Tiefstand seit Juli – Ölpreis über 100 Dollar

The German stock market felt significant pressure in the middle of the week. On Wednesday, the Dax index closed significantly lower than the 26,000-point mark, declining by 1.7 percent to 25,569 points. This marked one of the most loss-making trading days since March. The index had previously hit its lowest point on July 31 since September.

Since the end of August, the index has lost 1,000 points from its record high of 26,618.41 points. Investors reacted cautiously as energy prices continued to rise due to renewed tensions in the Middle East. Brent crude oil, used for November delivery, surged above the $100 per barrel mark for the first time since May. This was the highest level since February, when oil prices briefly reached nearly $120 per barrel.

Hope for a swift end to the war had previously driven oil prices back to pre-war levels of $70 per barrel in July. Tensions in the Persian Gulf have since intensified again. Since the beginning of August, the price of Brent oil has risen by more than a quarter. The US military claimed that in retaliation for Iranian attacks on a US warship, it destroyed five Iranian crude oil tankers and sank one.

Iran, in turn, alleged "heavy rocket attacks" against the Kingdom of Jordan, which is allied with the United States. The price of European natural gas (TTF) also rose further and reached a new all-time high, surpassing 80 euros per megawatt-hour (MWh) for the first time since late 2022. This followed a steep rise to 52 euros per MWh just a month ago.

As energy prices rise, they immediately have an inflationary and burdensome impact on consumer sentiment. In response, central banks are expected to raise interest rates to combat growing price pressure. The European Central Bank (ECB) is likely to raise interest rates for the second time this year during its meeting on Thursday.

Monetary policy is expected to be a major factor again in the markets in the coming days. Following the ECB's decision on Thursday, US inflation estimates for August will be released on Friday afternoon, which usually generates significant market movement, including in Germany. Inflation in the US was last at 3.4 percent. The US Federal Reserve will decide on interest rates on Friday evening, but unlike in Europe, the outcome of the decision is entirely uncertain.

Bond yields have reached multi-year highs in recent weeks, leading to significant sales in the bond market. In turn, bond yields have reached near-record levels. Ten-year German government bonds fell by 3.45 percent on Wednesday, reaching a new 15-year high for yields. Two-year papers yielded for the first time in nearly a year above three percent.

Bond yields in other European economies were also close to recent highs. Trading in the Dax index has once again been dominated by very low daily volumes. Few traders bought or sold shares. On Tuesday, only 42 million Dax shares changed hands, compared to just 36 million on Monday. In the past week, the trading volume has remained at this low level, except for a few exceptions.