FRANKFURT (dpa-AFX) - Developments in the Iran conflict significantly unsettled investors on the German stock market again on Wednesday. The Strait of Hormuz is effectively closed. Several ships in and near the strait, which is vital for global oil trade, came under fire, causing oil prices to rise once more.
This nervousness was reflected in the Dax's marked volatility. Following its recovery the previous day, the German benchmark index came under pressure again. Brief recoveries at midday and in the afternoon were quickly followed by larger losses. Ultimately, the stock market barometer ended the day with a decline of 1.37 percent at 23,640.03 points.
The MDax fell by 1.04 percent to 29,414.84 points. The situation across Europe and in the USA looked only slightly better. The Eurozone benchmark index, the EuroStoxx, dropped 0.73 percent to 5,794.68 points, while losses were also recorded in London and Zurich. In the USA, the Wall Street Dow Jones Industrial index saw similar declines at the time of the European market close, while the tech-heavy Nasdaq 100 held up better.
The energy market remains a barometer for investor concerns regarding the economy and inflation in the wake of the Iran conflict. There was only temporary relief as the International Energy Agency (IEA) announced plans to release a record amount of strategic oil reserves, totaling 400 million barrels.
According to Jochen Stanzl, chief market analyst at Consorsbank, this is however only a "temporary solution." He noted that the Dax's gains the previous day were merely a "technical recovery" that does not yet establish a new trend. In the best-case scenario, Stanzl expects a resilient floor for the benchmark index to form in one to two weeks./ck/mis
