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business/news//MarketScreener
The Dax was trading 0.7 percent higher at 25,365 points.
Brent crude oil prices dropped 3.5 percent to $96.21 per barrel, erasing Tuesday's gains.
KEY POINTS
Chemical giant Akzo Nobel rejected a joint takeover bid from Nippon Paint and Sherwin-Williams.
Volvo Car received US government approval to continue importing and distributing vehicles in the US.
Wacker Chemie sold shares in Siltronic but still retains about 24 percent of the company.
European stock markets followed the record-breaking momentum in the US, South Korea, and Japan at mid-week. By noon, the Dax was trading 0.7 percent higher at 25,365 points, approaching its previous all-time high of 25,507.79. The EuroStoxx50 gained nearly one percent to reach 6,112 points. On Tuesday, the benchmarks had closed around one percent lower after the US launched new strikes against Iran despite ongoing negotiations.
'Geopolitical tensions have recently eased to a level that allows investors to focus entirely on the expansion of AI investment and the resulting earnings growth,' said Jochen Stanzl, chief analyst at Consorsbank. 'For investors, the temptation to participate is too great to wait for a final end to the Iran war.' Further signs of a peace agreement between the US and Iran could simultaneously drive the Dax to new heights. European equities are currently being shunned by international investors primarily due to the risk of rising energy prices. This could change if the oil price falls sustainably below 100 dollars.
OIL INVESTORS CONTINUE TO BET ON END OF IRAN WAR
The price of Brent North Sea crude fell by around 3.5 percent to 96.21 dollars per barrel (159 liters) on Wednesday, largely retracing its Tuesday gains. US light crude WTI dropped nearly 4.5 percent to 89.89 dollars per barrel, remaining at its lowest level in over a month. 'An agreement may not be as imminent as hoped over the weekend,' Deutsche Bank analysts explained. However, peace talks appeared to remain on track despite the recent US strikes.
Michael Hewson, chief analyst at iFOREX Europe, struck a more cautious tone. 'Market participants are essentially pushing the problem into the background,' the expert said. The new status quo is one of persistent uncertainty, and as long as the situation in the Middle East does not deteriorate drastically, investors assume that 'there will be a resolution at some point.'
TECH AND CHEMICAL STOCKS IN DEMAND
The rally in the semiconductor sector in the US, South Korea, and Japan lifted shares of Infineon and Aixtron in Frankfurt by around 1.5 and three percent, respectively. The European technology sector index advanced by about half a percent.
In contrast, Wacker Chemie fell by around 1.5 percent. The Bavarian specialty chemicals group has divested shares in chip supplier Siltronic. 'At least Wacker still holds around 24 percent of Siltronic,' one trader commented.
On the Stockholm Stock Exchange, investors snapped up Volvo Car. The Swedish automaker announced it has received approval from the US government to continue importing and distributing vehicles in the US. Shares in the group, which is majority-owned by Chinese carmaker Geely, jumped nearly seven percent.
Meanwhile, the European chemicals index rose by more than 1.5 percent. Tailwinds were provided by a 15 percent surge in Akzo Nobel. A potential takeover battle is brewing around the Dutch paints and coatings manufacturer: the company rejected a joint bid from rivals Nippon Paint and Sherwin-Williams, opting instead to stick with its planned merger with US competitor Axalta.
(Report by Sanne Schimanski, edited by Kerstin Dörr. For inquiries, please contact our editorial office at [email protected] (for politics and economics) or [email protected] (for companies and markets).)