FRANKFURT (dpa-AFX): Investors in the German stock market rewarded the framework agreement between the U.S. and Iran to end hostilities on Monday, driving significant price gains. Sentiment was further bolstered by the successful, record-breaking IPO of the space and AI conglomerate SpaceX.
However, the momentum failed to keep the Dax sustainably above the 25,000-point threshold, and the benchmark index closed near its daily low. Ultimately, the lead index gained 1.05 percent to finish at 24,894.01 points, remaining some distance from its record high of 25,507 points. The MDax, which tracks mid-cap stocks, rose 1.56 percent to 32,582.63 points to start the week.
Following weeks of back-and-forth, the warring parties reached a letter of intent providing for an extension of the ceasefire and the reopening of the Strait of Hormuz, a critical artery for global oil and gas trade, for an initial period of 60 days. The agreement is intended to lay the groundwork for further negotiations, which are expected to address Tehran's nuclear program.
This development led to a decline in oil prices and eased concerns regarding the economy and inflation. Ahead of interest rate decisions by major central banks, including the U.S. Fed on Wednesday, this could potentially reduce the pressure to act, analysts noted. "Despite this undoubtedly good news, several uncertainties and open questions remain," commented financial analyst Yannik Mosbach of Bankhaus Metzler regarding the situation./edh/men
