FRANKFURT (dpa-AFX) - Renewed, albeit tentative, hopes for de-escalation in the Middle East are expected to drive equity markets higher mid-week. According to media reports, the US administration has presented Tehran with a 15-point proposal aimed at ending the conflict with Iran. Consequently, broker IG signaled a strong opening for the Dax, pricing it up over one percent at 22,900 points two hours ahead of the Xetra start.
US outlets, including "Axios" and the "New York Times", reported that Pakistan relayed the proposal to Iran. The plan reportedly demands significant concessions from the leadership in Tehran. Simultaneously, media reports indicate that the US government has ordered the deployment of thousands of troops from an airborne division to the Middle East.
In energy markets, Brent crude fell back below the 100 dollar mark. Asia-Pacific equity markets posted sharp gains in some regions. Stephen Innes, market analyst at SPI Asset Management, spoke of "light at the end of the tunnel." He noted that the oil market is currently no longer pricing in a worst-case scenario. However, the overall environment across financial markets remains "fragile and news-driven."/bek/zb
