FRANKFURT (dpa-AFX) - Rising oil prices and the looming Fed interest rate decision weighed on the German equity market on Wednesday, leading to modest losses. Domestic inflation data had little impact on price action. However, a raft of corporate quarterly reports impressed investors, sparking significant gains in several individual stocks.
The benchmark Dax index, which fluctuated around the closely watched 24,000-point level throughout the session, ultimately closed just below it. It ended the day down 0.27 percent at 23,954.56 points. The MDax, which tracks mid-cap stocks, shed 0.16 percent to finish at 30,010.78 points.
'The market could manage little more than a stabilization today,' noted market analyst Andreas Lipkow of CMC Markets. 'On one hand, the conflict in the Middle East is exerting pressure on the economy, inflation, and consequently the monetary policy of major central banks via energy prices. On the other hand, many corporate earnings managed to surprise to the upside, defying the gloomy economic outlook.'
The Eurozone benchmark EuroStoxx 50 fell by 0.34 percent to 5,816.48 points. Losses in London and Switzerland were even more pronounced. In the United States, the Dow Jones Industrial Average was soft as European markets closed, while the tech-heavy Nasdaq remained slightly in positive territory.
Renewed threats from US President Donald Trump against Iran pushed Brent North Sea crude prices significantly further above 100 US dollars per barrel. Although a ceasefire is currently in place in the Iran conflict, the latest warnings dampened hopes for a negotiated settlement and the prospect of a swift reopening of the Strait of Hormuz.
Against the backdrop of uncertainty fueled by the Iran conflict, the US Federal Reserve is widely expected to leave interest rates unchanged for the third consecutive time./ck/he
