Dax starts the week cautiously: oil prices are weighing on investors

Dusseldorf. After the recovery on Friday, DAX investors are cautious at the start of the new week. The leading German index opened on Monday almost unchanged at 25,444 points. “Investors currently have one foot on the accelerator and the other on the brake,” comments Timo Emden, chief analyst at broker CapTrader.

A renewed rise in the price of oil is causing a bad mood. The North Sea crude oil Brent and the US light oil WTI will increase in price by three and two percent respectively for delivery in November. At the weekend, US President Donald Trump rejected Iran's conditions for reopening the Strait of Hormuz, which is important for energy transport.

“Even if the prospect of further talks between Iran and the USA prevents a complete breakdown in mood, tension is likely to remain high,” says Emden. According to experts, the geopolitical risks in the region remain high due to ongoing attacks by the Houthi rebels on Saudi Arabia.

Since consumption remains weak despite initial signs of recovery in early indicators, “the risk of stagflation is increasingly hovering over the markets,” fears Andreas Lipkow, chief market analyst at the trading company CMC Markets. “The mix of stubborn inflation and weak growth is particularly unpleasant for stocks because it leaves central banks with little room for supportive monetary policy.”