By midday, the Dax was trading 0.5 percent higher at 24,920 points. In thin trading due to public holidays in several German states, the Dax is likely to remain vulnerable, according to analyst Timo Emden of Emden Research. 'Market participants continue to face significant uncertainty stemming from the unresolved Iran conflict, while hopes for a diplomatic solution have repeatedly been disappointed.' The EuroStoxx50 was up 0.3 percent at 6,070 points. U.S. futures pointed to a weaker opening on Wall Street.
OIL PRICES SLIDE - PROSPECTS OF CEASEFIRE PROVIDE SOME CALM
The announcement that Israel and Lebanon intend to implement an agreed ceasefire brought some relief to oil markets. Brent crude fell 1.7 percent to 96.20 dollars per barrel. U.S. WTI was trading 1.3 percent lower at 94.77 dollars. Tehran had made an agreement with Washington contingent, in part, on an end to the fighting between Israel and Lebanon. Analysts at ING warned that geopolitics continue to drive market volatility. Iranian Foreign Minister Abbas Araghchi stated on Wednesday that Tehran's contacts with Washington had not been severed, but that no progress had been made. U.S. President Donald Trump had suggested that progress in negotiations with Iran could be seen as early as this weekend.
BROADCOM WEIGHS ON CHIP SECTOR - SOFTWARE STOCKS RISE
In the semiconductor sector, Broadcom soured the mood. Broadcom shares plunged approximately twelve percent in after-hours U.S. trading after the chipmaker reported second-quarter revenue that fell short of expectations. In its wake, shares of Infineon and STMicroelectronics dropped 4.8 percent and 5.7 percent, respectively. 'It wasn't about hope and expectations; it created the impression that chip demand will not simply grow exponentially in the future,' said James Athey, fund manager at Marlborough. Tech-heavy stocks also took a dive on Asian exchanges.
Conversely, SAP shares, which carry a heavy weighting in the Dax, rose 4.7 percent. Other software titles such as CapGemini, Temenos, and Nemetschek gained between 3.6 and 7 percent. Traders recently noted a stabilization in the sector following weeks of heavy selling, as valuations have realigned and companies address AI-related risks. SAP shares have lost more than 21 percent since the beginning of the year.
REMY'S RESTRUCTURING TARGETS IMPRESS
An optimistic business outlook propelled shares of the trading platform CMC Markets up by more than 17 percent. For 2027, the British company expects operating profit to exceed analyst expectations. Trading activity remains strong thanks to increased market volatility, the company explained.
Investors in Paris were buoyed by the restructuring targets of cognac producer Remy Cointreau. The shares rose by up to 14.6 percent. The spirits group, which has struggled with declining business for years, aims for 60 percent profit growth within three years as part of its restructuring plan.
(Report by Anika Ross, edited by Christian Goetz. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
