DAX Drops Amid Middle East Tensions

(RTTNews) - The DAX index that tracks the performance of the 40 largest companies listed on the Frankfurt Stock Exchange slipped more than a percent on Friday as the sharp escalation in the Middle East conflict rattled global markets.

The DAX is currently trading 1.4 percent lower at 23,442.79, versus the previous close of 23,779.07. The day's trading ranged between a high of 23,560.84 and a low of 23,355.78.

In the 40-scrip index, only 1 scrip is trading in the overnight green zone. RWE recorded overnight gains of 1.2 percent.

Continental topped losses with a decline of 2.64 percent. Deutsche Bank, Heidelberg Materials, Adidas and Porsche have all declined more than 2.5 percent.

Amidst the Dollar's strength attributed to safe-haven flows that lifted the six-currency Dollar Index to a high of 98.39 earlier in the trade, the EUR/USD pair has slipped 0.45 percent. It is currently at 1.1533 after ranging between 1.1614 and 1.1512. The EUR/GBP pair has edged up 0.04 percent to 0.8507. The EUR/JPY pair has however decreased 0.20 percent to 165.87 as safe-haven Japanese yen strengthened following the escalation in geopolitical tensions in the Middle East.

Amidst global risk aversion and safe-haven demand, German bond yields have decreased 0.08 percent overnight to 2.4760 percent. The yield which was at 2.4780 percent at the previous close ranged between 2.4950 percent and 2.4220 percent in the day's trading. Data released earlier in the day showed wholesale prices in May increasing 0.4 percent year-on-year versus a 0.8 percent rise in April. On a month-on-month basis, prices decreased 0.3 percent as compared with a 0.1 percent drop in April.