DAX continues upward trend
The German equity benchmark extended its recent recovery, supported by improving market sentiment. Investors are gradually returning to risk assets following a period of heightened volatility.
Geopolitics remain a key driver
Developments in the Middle East continue to influence market direction. However, signs of easing tensions between the United States and Iran are helping to stabilise sentiment and reduce immediate downside risks.
A potential diplomatic solution is being discussed, although uncertainty remains around whether negotiations will lead to a lasting resolution.
Oil prices and market sentiment stabilise
Energy markets are closely linked to geopolitical developments. A stabilisation in oil prices, supported by expectations of reduced supply disruption, is contributing to the improved outlook for equities.
Lower volatility in energy markets is easing inflation concerns slightly, which in turn supports equity valuations.
Focus shifts to macroeconomic data
With geopolitical risks temporarily receding, investor focus is shifting back to economic fundamentals. Key data releases, including business sentiment indicators and US import prices, are expected to provide further direction.
