The DAX Responds Tightly to Geopolitical Uncertainty
The Israeli attack on Iran has significant consequences for global financial markets, particularly for the DAX. At the beginning of trading, the DAX fell by about one percent, which can be attributed to uncertainty and tensions in the Middle East. This situation affects several DAX companies, including Airbus, BASF, Lufthansa, Mercedes-Benz, and Rheinmetall.
Impact on Companies
- Airbus: As a leading aircraft manufacturer, Airbus could be affected by tensions in the Middle East, especially concerning supply chains and global trade relationships. Flight restrictions could also impact the demand for aircraft.
- BASF: The chemical industry is heavily dependent on raw material prices. A rise in oil prices could increase production costs and thus affect BASF’s profit margins.
- Lufthansa: The aviation sector is particularly vulnerable to geopolitical tensions. Flight cancellations or restrictions, as already implemented by Wizz Air Abu Dhabi, could also affect Lufthansa.
- Mercedes-Benz: The automobile industry is also dependent on raw material prices and global trade flows. Higher oil prices could raise transport and production costs.
- Rheinmetall: As a defense contractor, Rheinmetall could benefit from geopolitical tensions as the demand for defense goods may increase.
Global Market Developments
- Oil Price: The attack has caused oil prices to rise by up to 13 percent, increasing energy costs for businesses and potentially impacting inflation.
- Gold Price: During times of crisis, investors often seek safe investment forms like gold, leading to a rise in gold prices.
- Currencies: The Japanese yen benefits as a safe haven from tensions in the Middle East.
- Stock Markets: Globally, stock markets are under pressure as investors seek to avoid uncertainty and flee to safe investments.
Overall, it is evident that the Israeli attack on Iran has far-reaching effects on the global economy and specifically on the DAX, with the impacted companies responding differently.