FRANKFURT (dpa-AFX) - The German stock market buckled on Wednesday, weighed down by escalating tensions in the Iran conflict and renewed tariff threats from the U.S. The Dax fell 1.31 percent to 24,795.94 points, slipping below the closely watched 25,000-point threshold. The MDax, which tracks mid-cap companies, lost 0.64 percent to close at 32,736.35 points.
The situation in the Iran conflict remains murky. On Tuesday evening, U.S. President Donald Trump reaffirmed that negotiations between Washington and Tehran over a framework agreement are ongoing, despite contradictory statements from Iran. Reports from Tehran suggested that no talks had taken place for several days. Overnight into Wednesday, both sides engaged in the heaviest exchanges of fire since the ceasefire began. Oil prices trended higher once again.
Furthermore, the U.S. threatened 60 economies with new tariffs for failing to prevent imports of products allegedly made with forced labor or for insufficiently monitoring existing import bans. Consequently, the European Union, the United Kingdom, Canada, and China, among others, could face additional duties ranging between 10 and 12.5 percent.
The Dax's attempt to climb back toward record highs is becoming increasingly arduous, wrote market analyst Timo Emden of Emden Research. Instead of fresh signals of peace in the Iran conflict, reports of military escalation and new U.S. tariff threats dampened sentiment. 'On the way to the summit, every new burden is like another stone in the investors' backpack, while the air near record levels is becoming increasingly thin,' the expert concluded./la/he
