The DAX continued its upward trend on Monday afternoon, remaining positive after an already strong start to trading. Around 12:30 PM, the benchmark index was calculated at roughly 24,275 points, representing a 0.6% gain compared to Friday’s closing level.
Market analyst Andreas Lipkow of CMC Markets noted that investors appear cautious, focusing only on a few key companies, and described the overall market environment as unclear. Despite the uncertainty, hope for an end to the conflict in Iran provided underlying support to European stock markets.
However, mounting energy prices are impacting consumer confidence across Europe. This decline was confirmed early this week by the GfK Consumer Sentiment Index for May, which showed an acceleration in its downward trend.
In terms of individual stocks, the heavyweights Siemens were the main source of support for the DAX this week. Furthermore, Infineon’s shares gained momentum, boosted by the extremely optimistic mood within the semiconductor sector. Cyclical stocks, including Adidas, BASF, and auto shares, also saw investor interest.
Lipkow added that in an environment of lower trading volumes, investors are gravitating toward companies that stand to directly benefit from potential calm in the Middle East. Nevertheless, he remained skeptical, noting that it remains completely open whether an agreement will be reached or if Iran is even capable of making decisions in the current situation.
Looking ahead, the focus will shift to corporate earnings from the United States, as the compressed trading week marks the peak of the current earnings season. Major US tech giants, including Microsoft, Apple, Amazon, and Alphabet, alongside more than 200 European firms, are scheduled to present their quarterly reports.
In currency markets, the Euro strengthened on Monday afternoon, trading at 1.1742 US dollars per euro, meaning the dollar was valued at 0.8516 euros.
Regarding commodities, the gold price experienced a slight dip, falling to $4,706 for a fine ounce-a decrease of 0.1%-equating to an price of 128.85 euros per gram. Conversely, the oil price surged. The North Sea Brent barrel cost around $107.60 on Monday afternoon, representing a 2.2% increase compared to the previous day’s close.
