The DAX saw a partial reduction in its initial losses on Monday by midday. Around 12:30 PM, the main index was calculated at approximately 24,600 points, which placed it 0.7 percent below the closing level from Friday. Infineon, Porsche Holding, and RWE led the list of top-performing stocks, while Continental, Vonovia, and BASF were among the biggest losers.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that “investors are using the discounted prices to build selective stock positions,” specifically highlighting Infineon and RWE. He explained, “Both companies currently offer a sound and clear story for investors. Artificial intelligence requires semiconductors, and Infineon is among the beneficiaries. RWE benefits from increasingly growing energy demand and has excellently positioned itself within the European landscape over recent years.”
However, Lipkow cautioned that investors in Frankfurt remain reserved at the start of the week regarding companies in the consumer sector and traditional cyclical industries. While the overall sentiment remains “cautiously optimistic, but nervous,” he pointed out that the conflict in the Middle East fundamentally determines the dynamics and direction of financial markets.
Regarding global markets, the common European currency strengthened slightly on Monday afternoon. The Euro cost 1.1518 US dollars, and consequently, one dollar was valued at 0.8682 Euros. Meanwhile, oil prices rose. A barrel of North Sea Brent crude was trading at $96.64 around 12 PM German time, marking a 3.8 percent increase from the previous day’s close.
