FRANKFURT (dpa-AFX) - Following the US attack on Iran's nuclear program, the DAX is likely to show weakness again on Monday. Around two and a half hours before the start of trading on the Xetra, broker IG valued the German benchmark index at 0.6 percent lower at 23,218 points. This brings it closer to Friday's low, and the recently successfully tested 50-day average line is once again coming into focus.
Investors remain nervous in view of the geopolitical situation. The US has joined Israel's war against Iran and bombed underground Iranian nuclear facilities. US President Donald Trump's actions are raising international fears of an escalation of the war in the Middle East. With the surprise attack, the United States bypassed Germany and other European countries, which had been in talks with Tehran on Friday about further negotiations in the dispute over Iran's nuclear program.
"The ball is now in Tehran's court," commented market expert Stephen Innes of SPI Asset Management. "The big risk is not what has happened, but what will follow." The geopolitical risk premium rose accordingly – and with good reason. Meanwhile, crude oil prices continue to rise. One concern is that the Strait of Hormuz, which is so important for oil transport and thus for the global economy, could be blocked by Iran. /ag/zb
