The German DAX index managed to recover on Monday, climbing back to levels comparable to the previous Friday’s close after a relatively weak opening. As of 12:30 PM, the leading index was calculated at approximately 23,975 points, marking a 0.1% increase from the previous day’s closing level. During the session, companies like Deutsche Börse, RWE, and Infineon led the market, followed by Scout24, Heidelberg Materials, and Volkswagen.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors are seizing opportunities in DAX stocks under the 24,000-point mark, which helped drive the index back into positive territory after morning losses. He noted that the market continues to be supported by a small number of technology stocks, specifically mentioning Infineon and SAP, with the artificial intelligence (AI) theme also attracting interest, reflected in shares of Siemens Energy and Siemens.
Lipkow also pointed out that investors remain particularly interested in defensive sectors, naming financial and insurance stocks as current targets. However, he cautioned that investors maintained distance from cyclical industries and, specifically, from auto stocks.
On a broader note, the overall sentiment remains tempered by skepticism regarding the potential for a swift resolution of the conflict in Iran. Furthermore, climbing energy prices continue to put pressure on inflation and consumer spending patterns, fueling fears of an ongoing economic slowdown in Germany.
In currency markets, the Euro showed some strengthening on Monday afternoon. One Euro was priced at $1.1635, meaning that one US dollar cost €0.8595.
Meanwhile, crude oil prices rose. By noon German time, a barrel of North Sea Brent crude oil was trading at $110.30, an increase of 99 cents, or 0.9%, compared to the previous day’s close.
