FRANKFURT (dpa-AFX) - Renewed escalation in the Middle East caused the Dax to surrender a portion of Friday's robust gains on Monday. The situation in the Strait of Hormuz remains volatile and highly strained. After Iran announced on Friday that it would open the strait for the remainder of the ceasefire until Wednesday, the decision was rescinded after just one day.
Military leadership cited the ongoing U.S. blockade of Iranian ports as the reason for the reversal. Furthermore, according to a report by the state news agency IRNA, the Iranian leadership has rejected a second meeting with U.S. representatives, pointing to the blockade as well as excessive demands and constant policy shifts by the United States. Oil prices rose significantly once again, prompting equity investors to pivot back toward risk-off sentiment.
Shortly after the opening bell, the benchmark index shed 1.24 percent to 24,397.05 points, though it remained above the closely watched 200-day moving average. For technical analysts, this moving average serves as a key indicator of the long-term trend. The MDax, which tracks mid-cap stocks, fell 1.35 percent to 31,519.88 points. Meanwhile, the Eurozone's blue-chip EuroStoxx 50 index declined by 1.23 percent./ck/stk
