European markets experienced a subdued start to the trading week on Monday, with the German DAX index returning to levels seen at the close of the previous Friday. By midday, the benchmark index was calculated at approximately 24,388 points, a marginal gain over the previous day’s closing value.
Trading was characterized by volatility, with BMW, Munich Re and Hannover Re leading the gainers. Conversely, shares of BASF, Bayer and Infineon posted declines.
Market analysts attributed the cautious trading environment to a limited economic data release schedule and ongoing uncertainty stemming from the political situation in France. The recent resignation of Prime Minister Lecornu has triggered profit-taking, particularly among European banking and financial institutions.
Investor focus is currently centered on France’s ability to manage its financial stability, prompting concerns about potential contagion effects on other European financial institutions and increasing overall market uncertainty. The relative scarcity of immediate economic news has amplified the importance of this ongoing situation.
The Euro weakened against the US dollar, trading at $1.1657, equivalent to €0.8579 per dollar.
Gold prices saw a significant boost, reaching $3,940 per fine ounce (+1.4%), translating to €108.68 per gram.
Oil prices also recorded a notable increase, with a barrel of Brent North Sea crude fetching $65.69, a rise of 1.8% compared to the close of the previous trading day.
