FRANKFURT (dpa-AFX) - Persistent uncertainty surrounding the Middle East conflict and rising energy prices are increasingly testing investors' patience. On Thursday, the Dax retreated for the fourth consecutive trading session. The German benchmark index closed 0.16 percent lower at 24,155.45 points. Meanwhile, the MDax, which tracks mid-cap stocks, ended the day down 1.04 percent at 30,851.74 points.
Given the political and military stalemate between the United States and Iran, the price of Brent North Sea crude continued to climb, remaining firmly above the 100 US dollar mark. As inflationary and economic risks mount, equities are being shunned in this environment.
The general sense of unease is now manifesting in economic data. Business sentiment across the eurozone deteriorated further in April due to the fallout from the Iran conflict. High oil and gas prices, coupled with concerns over potential supply bottlenecks, are causing companies to take a more pessimistic view of the future. The S&P Global Purchasing Managers' Index fell to its lowest level in 17 months.
'Companies are concerned about waning consumer confidence and rising costs resulting from higher energy prices,' wrote Michael Herzum, Chief Economist at Union Investment. Potential supply chain disruptions are increasingly weighing on sentiment the longer the vital Strait of Hormuz remains closed./edh/he
