FRANKFURT (dpa-AFX) - With oil prices easing slightly, the Dax is expected to continue its recovery from its lowest levels since May 2025 on Tuesday. Two and a half hours before the Xetra open, broker IG saw the German benchmark index 0.6 percent higher at 23,555 points.
On Monday morning, the Dax initially plunged to 22,927 points following the escalation of the Iran war over the weekend and a rally in oil and natural gas prices. However, the post-weekend shock lasted only half an hour before some investors began gradually looking for buying opportunities again.
The panic in the energy market vanished as quickly as it appeared, commented Stephen Innes of SPI Asset Management. He noted that the recovery was driven by headlines ranging from the classic news cycle to the prospect of an early end to the war, as suggested by US President Trump.
If the war can indeed be ended sooner than previously expected, the geopolitical risk premium in the oil market will be dismantled rapidly, according to Innes. Instead of continuing to follow the "no-end-in-sight" scenario, the "front-run to the finale" has already begun./ag/zb
