The DAX began Monday’s trading session with losses. The leading index was calculated around 9:30 a.m. at approximately 24,560 points, marking a decrease of 0.8 percent compared to Friday’s closing level. The top performers in the market included Hannover Rück, Münchener Rück, and Deutsche Börse, while the laggards were MTU, Zalando, and Heidelberg Materials.
Investors reacted to several factors, including the renewed escalation in the Middle East. Thomas Altmann of QC Partners commented on the instability, noting, “It is once again unclear whether this new escalation will only be short-term or if it will mark the beginning of a new spiral of violence.” While the stock markets currently anticipate that the escalation will remain short-term, Altmann observed typical market reactions associated with rising oil prices, increased interest rates, and falling stock values. Despite these factors, the initial market responses have been only moderately negative. He added that a certain degree of habituation seems to have set in, and this moderate reaction may also be influenced by Donald Trump’s apparent efforts toward de-escalation.
In other economic news, the common European currency strengthened slightly on Monday morning, with the Euro trading at $1.1525 and the USD exchange rate at 0.8677 Euros. Meanwhile, the price of crude oil rose sharply; a barrel of Brent crude from the North Sea cost $97.58 around 9 a.m. German time, representing a 4.8 percent increase from the previous trading day’s close.
