FRANKFURT (dpa-AFX) - Following a midweek relief rally, the Dax came under renewed pressure on Thursday. Market sentiment was rattled by a rebound in oil prices, as the recently brokered ceasefire between the U.S. and Iran appeared increasingly fragile.
The German benchmark index slid 1.14 percent to 23,806.99 points. Just a day earlier, the index had posted its largest single-day percentage gain since 2022 on the back of the agreed truce in the Iran conflict. The MDax, which tracks Germany's mid-cap stocks, shed 0.80 percent on Thursday to close at 30,052.36 points.
The U.S. must choose - "either a ceasefire or the continuation of the war via Israel. They cannot have both," Iranian Foreign Minister Abbas Araghchi wrote on the X platform, referring to Israel's devastating airstrikes in Lebanon. U.S. President Donald Trump also threatened Iran with a fresh military escalation should a comprehensive agreement fail to materialize.
Nevertheless, Deutsche Bank's Jim Reid remained cautiously optimistic: "Compared to 24 hours ago, stress in financial markets has eased significantly," the strategist noted earlier in the day. On balance, concerns over a "stagflationary shock" - characterized by a slowing economy coupled with rising prices - have receded./bek/he
