The German DAX index commenced trading on Monday with a positive trajectory. By 9:30 AM Central European Time, the index reached approximately 23,760 points, representing a 0.7 percent increase from Friday’s closing bell. Continental, Infineon and Heidelberg Materials led the performance, while Beiersdorf, Munich Re and Symrise trailed at the bottom of the rankings.
Market analysts noted a shift in behavior following a Friday characterized by initial gains on the US stock market in response to favorable employment data. This positive reaction subsequently reversed, suggesting a possible end to a period where opportunistic investors saw rapid returns.
Jochen Stanzl, Chief Market Analyst at CMC Markets, attributed some of Monday’s cautious trading to political developments in France. “Today, the political dice are being rolled in France and no investor wants to take on that risk with new positions” Stanzl commented, referencing expectations for a potential government collapse in Paris following a confidence vote. He added that should Prime Minister Bayrou succeed in the vote, it would be a significant achievement likely welcomed by the market.
The Euro strengthened slightly on Monday morning, trading at $1.1730, with one US dollar equivalent to €0.8525.
Oil prices also saw a significant increase, with a barrel of Brent crude from the North Sea reaching $66.64 by 9:00 AM CET, a rise of 1.7 percent compared to the previous trading day’s close.
