Shares in Anheuser-Busch InBev, Hugo Boss, Rheinmetall, and UniCredit were in high demand following well-received financial results, gaining between 3.5 and 6.5 percent. UniCredit's takeover bid for Commerzbank also remained a key talking point. Shares in the Frankfurt-based lender held steady with a gain of over three percent. Conversely, Fresenius Medical Care and Fraport were sold off, losing five and one percent respectively following the release of their earnings reports.
CEASEFIRE UNDER THREAT
Investors are now awaiting results from U.S. giants Pfizer and AMD, scheduled for release this afternoon and after the U.S. market close. Futures for the major U.S. indices edged higher ahead of the reports. 'With no signs of a slowdown in sight, AI spending will likely continue to carry the brunt of earnings growth in the S&P 500, led by the technology sector,' said Jeff Buchbinder, chief equity strategist at LPL Financial.
Geopolitics also remain at the forefront. The fragile ceasefire in the Middle East is under threat following new military confrontations between the U.S. and Iran in the Strait of Hormuz. The U.S. military reported destroying six small Iranian boats as well as cruise missiles and drones. President Donald Trump had dispatched the Navy to escort blocked tankers through the strait as part of the 'Project Freedom' mission. Iranian Parliament Speaker Mohammad Bagher Ghalibaf stated that the security of shipping and energy transit was threatened by U.S. violations of the four-week-old ceasefire.
BITCOIN SURPASSES 81,000 DOLLARS
Concerns over potential supply bottlenecks drove oil prices up by approximately three and five percent on Monday. On Tuesday, prices retreated by 1.5 and 2.5 percent. 'The fact that the Maersk-operated vessel was able to successfully depart under escort has eased immediate concerns over supply chain disruptions,' said Tim Waterer, chief market analyst at KCM Trade. He noted that this demonstrated safe passage through the Strait of Hormuz is possible on a limited basis, though he added it remains a one-off event rather than a full reopening.
German companies are feeling the impact of the conflict with Iran primarily through their activities in the Middle East. 'Hopes for an economic recovery have been dashed,' said Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry (DIHK), citing a new survey. German companies active in the Gulf region are the most affected, with their assessment of the current business situation having collapsed.
Despite the tensions in the Middle East, investors once again turned to Bitcoin. The world's most traded cryptocurrency rose by up to 1.7 percent to 81,272 dollars. It has gained approximately 20 percent over the past month. 'The current move is driven primarily by increased institutional interest, inflows into Bitcoin ETFs, and market mechanical effects, rather than primarily by short-term speculation,' explained Timo Emden of Emden Research.
(Report by Sanne Schimanski, edited by Philipp Krach. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
