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DAX Slips Below Support Level– Geopolitical Tensions in Focus

Frank Sohlleder
June 20, 2025

The German leading index DAX fell below its support level on Thursday, closing the trading day down 1.12 percent at 23,057.38 points. A further decline below the 23,000-point mark now appears probable. From a market psychology perspective, this could trigger herd behavior and accelerate the downward movement. Although the DAX shows signs of stabilization in pre-market trading, investors are predominantly gripped by uncertainty regarding a potential US attack on Iran. The potential impact of such a conflict on global markets remains entirely unclear. Open questions concern the extent of any attack, the reaction of Iran's allies, and Iran's immediate retaliation.


Of particular note in this context is the Strait of Hormuz, through which approximately one-third of the world's crude oil is transported. A potential blockade of this waterway could have devastating economic consequences. The evolution of this complex geopolitical situation and its effects on the stock market will remain highly relevant, especially leading up to and over the weekend.


Individual DAX Stocks: Sartorius Up, Zalando Under Pressure

Within yesterday's DAX performance, some individual stocks stood out positively. Sartorius shares saw a gain of 2.7 percent. Siemens Healthineers rose slightly by 0.8 percent, while Deutsche Telekom recorded a modest price increase of 0.2 percent.

At the other end of the spectrum, Zalando shares experienced the largest losses in the DAX, down 4.4 percent. The bottom three were completed by Heidelberg Materials with a decline of 2.6 percent and Adidas with a price loss of 2.1 percent.


Oil Price Remains High – Potential for Further Increases

With regard to the critical situation in the Strait of Hormuz, the development of oil prices continues to require close monitoring. The price remains above 73 US dollars per barrel. Although price momentum is currently stagnating, any further escalation of geopolitical tensions carries the potential for another significant increase in oil prices at any time.


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