'There is no sign of de-escalation. On the contrary, the rhetoric is becoming more aggressive,' commented Andreas Lipkow, chief analyst at broker CMC Markets. US President Donald Trump has once again threatened Iran with consequences should the leadership in Tehran fail to act swiftly in accordance with his demands. 'The clock is ticking for Iran,' he wrote in a post on Truth Social on Sunday. Simultaneously, Iran intends to introduce a mechanism for cooperative vessels to traverse the Strait of Hormuz, which helped limit losses on the stock exchanges.
Nevertheless, expectations of prolonged high energy costs weighed on aviation stocks. Shares in Fraport, TUI, and Lufthansa shed between 2.5 and three percent. Automotive stocks were also among the biggest laggards, declining by an average of around 1.5 percent. At the same time, expectations of rising inflation and higher central bank interest rates pushed shares of real estate groups such as Vonovia, Aroundtown, and Hypoport into the red by nearly two to almost five percent.
(Report by Sanne Schimanski, edited by Elke Ahlswede. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
