Dax currently: Dax is trading barely changed - Rising oil prices make investors cautious
The German benchmark index is hardly changed on Monday morning. After Trump has rejected Iran's conditions for opening the Strait of Hormuz, the oil price is rising again.
Düsseldorf – The DAX index, Germany's leading stock market indicator, appears largely unchanged at 25,383 points as investors enter the new week cautiously. Analyst Timo Emden from broker CapTrader notes that traders are "standing on both the accelerator and the brakes." The recent rise in oil prices, with Brent crude and US Light Crude WTI increasing by 4% each to $108.96 and $96.25 respectively for November delivery, is adding to the cautious sentiment.
US President Donald Trump has rejected Iran's conditions for reopening the Hormuz Strait, a crucial passage for energy transport. While the prospect of further talks between Iran and the US is expected to prevent a complete market downturn, geopolitical tensions remain high due to ongoing Houthi rebel attacks on Saudi Arabia. With consumer sentiment showing only slight improvement despite early recovery signals, there is a growing risk of stagflation on the markets, warns Chief Market Analyst Andreas Lipkow of trading house CMC Markets.
He warns that the combination of persistent inflation and weak growth poses a particular challenge for central banks, limiting their ability to provide supportive monetary policies for equities.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
