Following the surge at the start of the week, Dax investors are searching for direction. The German benchmark index opened 0.1 percent higher on Tuesday at 22,677 points before slipping into negative territory. "Volatility in Dax prices will continue to increase day by day," noted Jochen Stanzl, analyst at Consorsbank. "Markets are currently more interested in the number of ships passing through the Strait of Hormuz than in sensational remarks from the US President." On Monday, US President Donald Trump announced he would suspend strikes against Iran, a move that pulled the Dax out of the red and briefly catapulted it up by as much as 3.6 percent before gains partially evaporated.
The biggest laggard on the Dax was SAP, falling 4.5 percent following a drastic price target cut by JP Morgan. Analysts lowered their target for the Walldorf-based software group to 175 euros from 260 euros, while simultaneously downgrading the stock to "Neutral" from "Overweight."
(Reporting by Stefanie Geiger, edited by Ralf Banser. 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)
