DAX is standing still: oil prices and interest rate concerns are weighing on the stock markets

At the start of trading, the German leading index was almost unchanged in percentage terms at 25,378 points. At the beginning of the week, the DAX ended trading slightly weaker at 25,374 points.

“In the absence of stimulus, the DAX is currently just standing still,” comments Jochen Stanzl, market observer at Consorsbank. "While oil prices are rising again, there is still hope for a diplomatic agreement. The reasons for and the reasons against buying shares are currently more or less canceling each other out."

When oil prices rise, stock markets fall. If the price of oil falls, the stock markets are more likely to rise. This pattern has been observed for months now. As long as the crisis in the Middle East is not resolved, this is likely to remain the case. The North Sea Brent variety rose in price today by up to 2.5 percent to $107.87 per barrel. The price of US light oil WTI also rose by more than two percent.

“As long as the sea route is only usable to a limited extent, the oil price is likely to react sensitively to news from the region. An agreement, however, could cause it to fall quickly and significantly,” says Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank. According to media reports, mediators from Qatar are now planning talks with the warring parties.

As oil prices rise, concerns about persistent inflation and further interest rate increases by central banks continue to rise. Market observers therefore now see the probability of an interest rate increase by the US Federal Reserve (Fed) in October at around 70 percent.

The Fed had already raised interest rates by a quarter of a percentage point at the beginning of the month and signaled further steps. “The bond markets now consider a further interest rate increase by the Fed in October to be likely,” note the experts at Landesbank Baden-Württemberg (LBBW).

The South Korean technology group Samsung is investing one billion dollars in the US company Helix Digital to support its global expansion of artificial intelligence (AI) infrastructure. Half of the sum comes from Samsung Electronics, the rest from other subsidiaries, said the company, which is backed by financial investor KKR.

Helix Digital invests in and operates AI infrastructure. These include large data centers, power generation and transmission, and fiber optic networks. In addition to KKR, Helix's other investors include Kuwait's sovereign wealth fund and chipmaker Nvidia.