FRANKFURT (dpa-AFX) - The German stock market performed a spectacular U-turn on Monday following statements by US President Donald Trump regarding the conflict with Iran, closing significantly higher. Trump ordered a five-day suspension of previously threatened strikes on Iranian power plants and energy infrastructure. This followed what he described on his Truth Social platform as "very good and productive talks regarding a full and final settlement of our hostilities" over the past two days.
However, Iran's denial of negotiations with the US somewhat dampened market euphoria: after an initial surge of more than 3.5 percent, the Dax retreated in the afternoon to close 1.22 percent higher at 22,653.86 points. Until midday, the German benchmark index had been in a steep decline. The intraday volatility of nearly six percent was the highest since the interim low on April 7, 2025, following Trump's tariff shock. The MDax index of mid-cap companies ultimately climbed 1.56 percent on Monday to 28,229.36 points.
On a positive note, the US appears to remain interested in a "deal," commented analyst Sören Hettler of DZ Bank. He noted that the strong market reaction illustrates that capital markets are ready to "look toward the future more positively, provided tangible signs of de-escalation emerge." Nevertheless, market participants remained cautious, as a resolution to the conflict - especially following the Iranian denial - is "far from a done deal," according to Hettler./edh/jha/
