Market report: Oil prices fall - DAX rises over 25,000 points
The leading German index rose in early trading, but remained under observation in view of geopolitical risks and the 200-day line.
Quick Look
- In early trading, the DAX rose by 0.9 percent to 25,034 points and regained the psychological mark.
- Analysts point to falling energy prices and US statements on Iran, while geopolitical uncertainties and the 200-day line remain in focus.
AI-generated summary
Why It Matters
The DAX had previously fallen to 24,806 points, while geopolitical tensions and oil prices weighed on the markets.
In early trading, the German leading index DAX rose by 0.9 percent to 25,034 points. The round brand has been reclaimed, at least for the time being. Yesterday the DAX fell 1.2 percent to 24,806.
"The jump back above the psychological 25,000 point mark should not hide the fact that there are considerable uncertainties simmering beneath the surface. Bargain hunters may have started hunting at the moment," comments Timo Emden, chief market analyst at CapTrader.
According to analyst Frank Sohlleder from the broker ActivTrades, the central question for the end of the week is whether the DAX will be able to achieve technical rescue above the 200-day line. The widely followed 200-day line for the longer-term trend is currently at 24,857 points. If the DAX were to fall below this price mark, further losses would be likely from a chart perspective.
Energy prices provide some relief at the end of the week. The prices for Brent crude oil and US WTI oil are falling. The mood is improving slightly because US President Donald Trump said his country would not attack Iran before the US elections next month. He spoke of productive talks to end the war.
But what weight should be given to statements made by the US President? "The big question for markets is whether Trump will stick to his word if Iranian attacks intensify," said Nick Twidale, chief market strategist at ATFX Global.
The DAX continues to depend on oil prices and bond yields, says Emden. "Both together are currently determining the oxygen supply to the stock markets. Between geopolitical and monetary policy risks as well as worries about France, the DAX remains in a stranglehold."
When it comes to individual companies, SpaceX is the focus. The space company with its satellite operator Starlink is challenging established US mobile phone providers such as T-Mobile US and Verizon. SpaceX agreed to purchase a nationwide portfolio of low-frequency spectrum in order to offer future cellular connections directly from space on smartphones.
Investors are taking the new competitor very seriously: Shares in major US telecommunications stocks fell after trading, including T-Mobile US. Shares in the parent company Deutsche Telekom are also on the sell list this morning and are falling significantly.
What to Watch
AI outlook — possibilities, not facts
DAX price development depends on the 200-day line
Likely · Within days
Open Questions
- Is the DAX holding above the 200-day line?
- Will Trump stick to his statements about Iran?
