The German stock index (DAX) continues to experience stagnation, showing neither a significant decline nor sufficient upward momentum. The overall market sentiment remains tense. Investors' attention on Wednesday was focused on the Federal Reserve, seeking to understand its assessment of the current economic situation. Following the release of the Dot Plot, it appears that a majority of the Federal Open Market Committee (FOMC) members still anticipate elevated inflation in the US, as forecasts for interest rate cuts remained unchanged. Two further interest rate cuts are still expected this year. These prospects failed to invigorate the stock markets. A further dampener could soon follow if Donald Trump orders an attack on Iran, with reports suggesting the plans are already approved and only awaiting a command.
MTU Aero Engines Achieves New Record Highs
For the DAX, Wednesday saw volatile trading, concluding with a closing price of 23,317.81 points, representing a 0.5 percent decline. The index is currently hovering at its support level of 23,250 points. Should this level be breached, the next technical support lies at the 100-day moving average, currently around 22,900 points.
In contrast, shares of MTU Aero Engines AG continue their success story, reaching new record highs. This development may be linked to the company's improved business forecasts presented at the Paris Air Show, which surpassed analyst expectations. The resulting target upgrades from analyst firms are attracting investors, contributing to the stock's current record highs.
Middle East Conflict Keeps Oil Prices High
The conflict between Israel and Iran continues to keep oil prices elevated at around $73 per barrel for WTI crude oil. As long as no de-escalation is in sight, there remains a risk of a blockade of the Strait of Hormuz. Such a blockade would likely lead to a further significant increase in oil prices.
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