The Dax is expected to start Wednesday’s session in the green, according to early indications from the futures markets. On Tuesday, the flagship index of the Frankfurt stock exchange closed down by over 1% at 22,921.59 points. The drop in European markets was triggered by the ultimatum from U.S. President Donald Trump to Iran for the reopening of the Strait of Hormuz. However, investors on Wall Street have not given up hope for an agreement, as the major U.S. indices ended the session close to equilibrium.
Less than two hours before the ultimatum’s expiration, Donald Trump agreed to a two-week ceasefire with Iran. The condition for this truce is that Iran lifts its blockade of the Strait of Hormuz, the president announced on his Truth Social platform. This announcement caused oil prices to plummet by nearly 15%.
Mid-week, Donald Trump will meet with NATO Secretary-General Mark Rutte at the White House in Washington. The U.S. president recently threatened to withdraw from the Western military alliance due to European members’ refusal to send ships to free the Strait of Hormuz. According to NATO, Mark Rutte’s visit was planned well in advance.
Investors will also be watching the “minutes” of the Federal Reserve’s latest monetary policy meeting. Central bankers had left interest rates unchanged in mid-March, just a few weeks after hostilities began in the Middle East.
Attention will also be focused on data related to the German industry, which has been struggling recently. It is expected to have recorded an increase in orders in the period leading up to the conflict. Investors are also awaiting the production price and retail sales figures for the eurozone in February.
Indices Closings Level European stocks and futures on Tuesday Dax 22,921.59 EuroStoxx50 5,633.22 EuroStoxx50-Future 5,567.00
US indices closings Level Change in percentage Dow Jones 46,584.46 -0.2% Nasdaq S&P 500 6,616.85 +0.1%
Asian indices Course at 07:00 Change in percentage Nikkei 56,308.00 +5.4% Shanghai 3,964.72 +1.9% Hang Seng 25,833.58 +2.8%
(Report by Sanne Schimanski. For any questions, please contact our Berlin newsroom at berlin.newsroom@thomsonreuters.com (politics and economy) or Frankfurt newsroom at frankfurt.newsroom@thomsonreuters.com (business and markets).)
