FX.co ★ DAX 40 Surges on Middle East Peace Hopes

Frankfurt’s DAX 40 rose nearly 2% on Wednesday, reclaiming the 23,000 mark, as optimism increased over a possible swift resolution to the Middle East conflict. The United States has put forward a 15-point peace proposal to Tehran, to follow a potential one-month ceasefire, with President Trump asserting that Iran is "desperate to reach a deal." Iran’s military leadership, however, rejected these claims and sharply criticized the US government. Despite ongoing geopolitical tensions, Brent crude slipped below $100 a barrel, easing inflation concerns and leading investors to scale back expectations for monetary tightening. Markets now foresee only two interest rate hikes by year-end from both the ECB and the Bank of England, down from earlier forecasts of three increases.