The Dax is set to open firmer on Thursday, according to price action in futures markets. On Wednesday, Germany's blue-chip index closed 2.2% lower at 24,897.45 points. On Wall Street, the Dow Jones index and the S&P 500 also moved lower. Sentiment on both sides of the Atlantic was weighed down by investors' fear of a renewed flare-up in the conflict between the US and Iran.

Developments in the Middle East are also likely to remain the central topic on Thursday. The US military launched new attacks on Iran on Wednesday, just hours after President Donald Trump had declared a preliminary agreement to end the war to be 'over'. Both sides had already attacked each other earlier. The latest escalation is denting hopes for a lasting peace deal. Oil prices continued to climb on Thursday. North Sea Brent and US crude WTI have each risen by around 10% since Tuesday.

Also still in focus is US monetary policy in the months ahead. Minutes from the US Federal Reserve's June meeting, published on Wednesday, show that the new chair Kevin Warsh has rallied policymakers around the fight against inflation. The central bankers most recently held the key rate steady in a range of 3.50% to 3.75%, but signaled a possible tightening later in the year.

On the macro front, traders are watching Germany's exporters. Experts expect exports to have fallen 0.3% from the previous month. In April, there had still been an increase of 0.9%.

On the corporate side, Volkswagen is likely to generate headlines. The supervisory board meets in the afternoon to discuss the company's restructuring. Four plants in Germany and tens of thousands of jobs are at stake.

European stock index closing levels Level  

and futures on Wednesday

Dax 24,897.45    

EuroStoxx50 6,204.91    

EuroStoxx50 future 6,217.00    

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US index closing levels Level Change in

on Wednesday percent

Dow Jones 52,348.39   -1.1%  

Nasdaq 

S&P 500  7,482.71   -0.3%  

----------    

Asian indexes at Levels at 07:00 Change in

Thursday a.m. percent

Nikkei 

Shanghai 3,952.49   -0.5%  

Hang Seng 24,011.03   -0.8%  

(Report by Daniela Pegna, Sanne Schimanski. For queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)