The expected rise of the Dax

The DAX is expected to start Wednesday’s session in the green, according to early indications from the futures markets. On Tuesday, the flagship index of the Frankfurt Stock Exchange closed down more than 1% at 22,921.59 points. The drop in European markets was triggered by the ultimatum issued by US President Donald Trump to Iran for the reopening of the Strait of Hormuz. However, investors on Wall Street have not lost hope for an agreement, as the main US indices ended the session close to equilibrium.

Less than two hours before the ultimatum expired, Donald Trump agreed to a two-week ceasefire with Iran. The condition of this truce is that Iran lifts its blockade of the Strait of Hormuz, the president announced on his Truth Social social media platform. This announcement caused oil prices to plunge by nearly 15%.

Midweek, Donald Trump will meet with NATO Secretary General Mark Rutte at the White House in Washington. The US president had recently threatened to withdraw from the Western military alliance due to the European members’ refusal to send ships to free the Strait of Hormuz. According to NATO, Mark Rutte’s visit was planned well in advance.

Investors will also be scrutinizing the “minutes” from the Federal Reserve’s latest monetary policy meeting. Central bankers had kept interest rates unchanged in mid-March, just a few weeks after hostilities began in the Middle East.

Attention will also be on data related to the German industry, which has been struggling recently. It is expected to have seen an increase in orders in the period leading up to the conflict. Investors are also awaiting the eurozone’s figures for producer prices and retail sales for the month of February.

Closing indices levels:

• DAX: 22,921.59
• EuroStoxx50: 5,633.22
• EuroStoxx50-Future: 5,567.00

US indices close on Tuesday:

• Dow Jones: 46,584.46 (-0.2%)
• Nasdaq
• S&P 500: 6,616.85 (+0.1%)

Asian indices at 07:00 on Wednesday:

• Nikkei: 56,308.00 (+5.4%)
• Shanghai: 3,964.72 (+1.9%)
• Hang Seng: 25,833.58 (+2.8%)

(Report by Sanne Schimanski. For inquiries, please contact our Berlin newsroom at berlin.newsroom@thomsonreuters.com (politics and economy) or frankfurt.newsroom@thomsonreuters.com (business and markets).)