FRANKFURT (dpa-AFX) - The Dax failed to achieve a sustained stabilization on Friday, despite faint hopes of an easing in the oil market. The U.S. intends to temporarily relax its Russia sanctions, allowing countries to purchase Russian oil currently in transit on ships for the time being. The price for a barrel of North Sea Brent crude recently fell slightly below the 100-dollar mark. Meanwhile, however, Iran threatened further attacks on oil and gas infrastructure in the Gulf region. The Italian government has since denied media reports regarding talks between France, Italy, and Iran concerning potential safe passage through the Strait of Hormuz.
Approximately two weeks after the outbreak of war in Iran, the Dax ultimately headed into the weekend 0.60 percent lower at 23,447.29 points. The German benchmark index was unable to hold onto intraday gains of more than 0.7 percent. However, it has managed to distance itself significantly from the low of 22,927 points reached on Monday, its weakest level since May. For the week, the index recorded a loss of just over half a percent. The MDax of medium-sized companies shed 1.45 percent on Friday to close at 28,819.46 points.
"The geopolitical news cycle is changing too rapidly for investors to be willing to carry large speculative positions into the weekend," commented market analyst Andreas Lipkow from broker CMC Markets. The prevailing sentiment on the stock exchanges remains "risk-off." In light of high oil prices, investors fear stagflation - meaning at least stagnant economic growth coupled with rising inflation. Against this backdrop, focus is shifting to the interest rate decisions from the U.S. Federal Reserve and the European Central Bank (ECB), both of which are scheduled for next week./niw/mis
