The Iran war has increased downward pressure on global stock markets. The German leading index fell Dax and lost 3.44 percent to 23,790.65 points at the end of trading. With the significant slide below the 100 and 200 day average lines, the long-term price also clouded over.
After two days of heavy losses, it’s over Price gains since the beginning of the year has now become a clear minus. The MDax for medium-sized companies fell by a further 3.44 percent to 29,801.02 points.
Things are also going downhill on US stock exchanges
The Eurozone leading index Euro Stoxx 50 ended trading with a loss of 3.6 percent. Investors also experienced further price losses in Great Britain and Switzerland.
On the US stock exchanges, which had shown themselves to be comparatively robust at the beginning of the week, there was a clear downward trend after a day’s delay, although not quite as sharply as in Europe. The most important US indices were each down around 1.5 percent. Gold and silver also fell sharply.
The price of ten-year US government bonds was slightly in the red, which improved the yield. “We normally see a rotation in nervous market phases: capital moves from riskier investments such as stocks into supposedly safe havens such as government bonds or gold,” said Salah-Eddine Bouhmidi, an expert at broker IG. “But today it is precisely this movement that is missing.”
There are still concerns among investors about an energy crisis due to the Iran war. As a result of the war, oil and natural gas prices rosewhich in turn fuels economic and inflation fears. “What determines market sentiment is how much the conflict expands, how long it lasts, and how the other major powers react to the attack and how much energy prices are rising” said Chris Iggo from the capital management company BNP Paribas Asset Management.