Renewed attacks in the Iran war are weighing on sentiment in international financial markets. Oil prices rose sharply in the morning: Brent crude briefly traded above $87, a gain of about four percent. In Asia, stock markets reacted with losses. Japan’s Nikkei index fell around two percent, while South Korea’s Kospi plunged another five percent. Technology stocks came under selling pressure.
For the German benchmark DAX, initial indications point to a decline of about 0.6 percent at the open. US markets had previously held up better: the Dow Jones gained one percent, while the Nasdaq fell only a moderate 0.2 percent. The focus today is on quarterly results from US tech giants Microsoft and Meta, expected after the market close. They are seen as a key test for the AI-driven rally. In addition, the US Federal Reserve will decide on interest rates this evening. No change is expected; the range is likely to remain at 3.50 to 3.75 percent.
Deutsche Bank, meanwhile, surprised with a jump in profits. Its pre-tax result reached €2.68 billion in the second quarter, just shy of the 2007 record. Net profit rose ten percent to €1.64 billion. In the second half of the year, the bank plans further share buybacks worth €500 million. Chemical group BASF is also making progress with its cost-cutting program. CEO Markus Kamieth said the company had reduced costs, cut investments, and increased capacity utilization. From January 2024 to the end of June 2026, the company cut around 7,000 jobs worldwide.
Source: Tagesschau
