FRANKFURT (dpa-AFX) - Despite the continued lack of a breakthrough in negotiations between the U.S. and Iran, the German stock market opened little changed on Monday. Meanwhile, oil prices rose once again. Market participants are also focusing on U.S. President Donald Trump's visit to China this week. While the primary objective is to resolve the trade dispute between the world's two largest economies, investors are also hoping for positive momentum regarding the Iran conflict.
The Dax edged down 0.1 percent to 24,312 points in early trading. Last week, the German benchmark index had reached its highest level since the start of the war in late February, climbing just above 25,150 points on signs of easing tensions. However, by Friday, it had surrendered almost all of those gains.
The MDax, which tracks mid-cap stocks, rose 0.1 percent to 31,220 points on Monday. The Eurozone's blue-chip EuroStoxx 50 index slipped 0.2 percent to 5,902 points.
A diplomatic solution to the Iran conflict is currently nowhere in sight. Instead, the situation appears to be escalating further, as President Trump described Iran's latest response to the U.S.-proposed peace plan as 'completely unacceptable'. He reacted with further threats against the Islamic Republic, while its leadership remained unfazed and issued demands of its own. Furthermore, Israeli Prime Minister Benjamin Netanyahu intends to continue the war until key questions regarding the Iranian nuclear program are resolved.
According to market analyst Jochen Stanzl of Consorsbank, investors would be well-advised 'not to write off the still-unresolved Middle East conflict prematurely'. It remains unclear how the maximalist demands on both sides can be reconciled. 'Investors are now hoping that President Trump's visit to China could inject momentum into a diplomatic process that has recently stalled,' he said, explaining the steady start to the session./ck/mis
