FRANKFURT (dpa-AFX) - With oil prices rising significantly and very weak cues from the US, the Dax is expected to suffer another clear setback on Thursday. Two and a half hours before the Xetra start, broker IG valued the German benchmark index 1.6 percent lower at 23,124 points on the fourteenth trading day since the outbreak of war in Iran. This pushes the Dax back toward the 23,000-point mark. Last Monday, it briefly plunged to 22,927 points following the shock to the energy market, but ultimately managed to stay above 23,000 points.
Now, pressure is once again coming from oil prices, whose rise is fueling economic and inflation concerns. Currently, a barrel (159 liters) of North Sea Brent is back at around 112 dollars. The previous peak during the Iran war was reached last Monday at nearly 120 dollars, the highest level since 2022. An Iranian official spoke of a new stage of escalation on X overnight. This is the regime's response to increasing attacks on its energy infrastructure. For its part, Iran views energy infrastructure in Saudi Arabia, the United Arab Emirates, and Qatar as legitimate targets.
On the previous evening, the main US indices significantly extended their losses after the close of European trading. Against the backdrop of uncertainty caused by the Iran war, the US Federal Reserve left its key interest rates unchanged, as expected. A Commerzbank expert spoke of a "hawkish adherence" to the current rate. In terms of monetary policy, so-called "hawks" focus restrictively on fighting inflation through rising interest rates.
Several more interest rate decisions are due on Thursday, including those from the European Central Bank and the Bank of England. The ECB is also expected to hold steady for now./ag/zb
