FRANKFURT (dpa-AFX) - Hopes for an end to the blockade of the Strait of Hormuz significantly cushioned earlier sharp losses on the German stock market this Thursday. The Dax, which had slumped by nearly 3 percent in the early afternoon, ultimately pared its decline ahead of the Easter holidays to close 0.56 percent lower at 23,168.08 points. Over the shortened Holy Week, the German benchmark index has recovered by nearly 4 percent. The MDax, tracking mid-cap stocks, finished Thursday's session down 0.99 percent at 28,916.26 points.
Market sentiment was notably bolstered by a report from the Iranian state news agency IRNA. According to the report, Iran is currently working with Oman on a protocol to monitor maritime traffic through this strategically vital strait. Citing the Iranian Deputy Foreign Minister, the report stated that the discussions focus, among other things, on ensuring safe passage.
Earlier, a televised address by Donald Trump had triggered another sharp rise in oil prices. While the U.S. President promised a swift end to the conflict in the Middle East, he simultaneously warned Iran of continued heavy strikes on its power plants in the coming weeks should no agreement be reached. April 6 marks the expiration of the deadline extended by Trump for the destruction of energy facilities, a measure intended to force the reopening of the Strait of Hormuz.
The EuroStoxx 50 slipped 0.70 percent to 5,692.86 points ahead of Easter. The eurozone's leading index also managed to significantly reduce its intraday losses. In Zurich, the SMI almost fully recovered from its daily lows, while London recorded modest gains. In the U.S., the Dow Jones Industrial Average trimmed its opening losses to trade down just 0.2 percent at the time of the European close./ck/he
