The DAX showed a decline as the week started. At the close of trading on Xetra, the index was calculated at 24,616 points, representing a drop of 0.6 percent compared to the previous trading day.
Among the few companies to gain were shares of Infineon, Adidas, and Daimler Truck, while BASF, Heidelberg Materials, and Brenntag finished near the bottom of the price list.
Timo Emden, a market analyst at Emden Research, stated that investors are currently navigating a challenging environment defined by geopolitical risks, uncertainty regarding monetary policy, and high expectations surrounding the structural growth topic of Artificial Intelligence.
He suggested that the DAX is operating like a balancing act between hope and reality. It is supported by the AI euphoria as a key growth driver but constrained by geopolitical flare-ups and monetary policy brakes. Emden added that monetary uncertainties clash with geopolitical risks stemming from the conflict in Iran, even as investors maintain hopes for a possible diplomatic solution between Washington and Tehran.
However, Emden warned that AI remains a double-edged sword, particularly in the context of the anticipated SpaceX IPO, which is fueling valuation fantasies in the tech sector. He cautioned that if this momentum subsides or if growth expectations in the AI sector fail to materialize at the hoped-for pace, a broader re-evaluation of risk assets could occur.
In other markets, the Euro strengthened on Monday afternoon, trading at $1.1539 per Euro, meaning the dollar was available for 0.8666 Euros.
The price of gold rose slightly, reaching $4,337 per fine ounce in the afternoon (+0.2 percent). This corresponds to a price of 120.83 Euros per gram.
Meanwhile, oil prices increased substantially. A barrel of North Sea Brent crude cost $94.74 on Monday afternoon around 5 PM Central European Time, marking an increase of 1.8 percent from the close of the previous trading day.
