Germany’s leading index DAX opened 1.7 percent higher at 25,060 points on Monday, returning above the 25,000 mark. The trigger was the surprise agreement between the US and Iran on a framework deal to end the war. The MDax even gained 2.6 percent to 32,918 points.
After weeks of negotiations, the parties agreed on a memorandum of understanding that provides for an extension of the ceasefire and the reopening of the Strait of Hormuz. Besides the US government and Iran, mediator Pakistan also confirmed the deal. The agreement is intended to form the basis for further talks, including on Iran’s nuclear program.
Despite the positive news, financial analyst Yannik Mosbach from Bankhaus Metzler warned against premature euphoria: “Despite these undoubtedly good news, some uncertainties and open questions remain.” Investors nevertheless reacted positively, as sharply falling oil prices eased concerns about the economy and inflation. Additional support came from the record IPO of space and AI company SpaceX on Friday in New York.
Source: www.handelsblatt.com
