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Frankfurt rises 1.05% driven by US-Iran peace deal
🇵🇾 Paraguay /Economy & Trade

Frankfurt rises 1.05% driven by US-Iran peace deal

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News From a news agency Context piece
  • The DAX 40 index in Frankfurt rose 1.05% on Monday, driven by a peace agreement between the US and Iran.
  • The agreement is expected to reduce oil prices and increase market risk tolerance.
  • The stock performance was also influenced by SpaceX's successful IPO and a takeover dispute involving Deutsche Bank.

Frankfurt's stock market saw a significant boost on Monday, with the DAX 40 index climbing 1.05% to close at 24,894.01 points. This upward trend was largely propelled by the announcement of a peace agreement between the United States and Iran.

The accord, slated for signing in Geneva, is anticipated to extend a ceasefire and permit the reopening of the Strait of Hormuz for an initial 60-day period. While doubts linger regarding Iran's nuclear program and frozen funds, the prospect of reduced oil prices and increased market risk tolerance fueled investor confidence across German equities.

Iran is not going to receive a single dollar from the US.

— JD VanceUS Vice President JD Vance commented on the financial aspects of the US-Iran deal to ABC television.

Beyond the geopolitical developments, the successful initial public offering of Elon Musk's SpaceX also contributed to the positive sentiment in Frankfurt. However, the banking sector presented a mixed picture. Deutsche Bank shares surged 4.3%, but Commerzbank experienced a decline amid a public dispute with Italian bank UniCredit, which has made a takeover offer and claims a significant stake.

In the industrial sector, aircraft engine manufacturer MTU Aero Engines saw its stock rise 4.2%, and automaker Mercedes-Benz Group advanced 2.8%. Conversely, defense contractor Rheinmetall lost 4.6% as peace prospects in Iran tempered expectations for military spending. Concerns were also raised about the future of a Franco-German tank project, with Rheinmetall acknowledging the possibility of France withdrawing.

France's withdrawal from the tank project with Germany cannot be ruled out.

— RheinmetallThe defense company expressed concerns about the Franco-German tank project.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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