The DAX started the week on a positive note, closing at 25,139 points on Xetra, marking a gain of 0.6 percent compared to the previous trading day. Among the stocks that gained momentum on Monday were Infineon and Zalando, while shares in Scout24, Telekom, and Rheinmetall experienced downward pressure.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that few investors currently see compelling reasons to buy the DAX above the 25,000 point mark. He noted that with the summer break approaching and important economic and price data due this week, many investors remain on the sidelines, reserving their buying power. Although the index saw some upward movement in the afternoon, this move has not been sustainable. Furthermore, negative trends observed in Wall Street indexes have made defending the round number in the DAX increasingly difficult.
Adding to the volatility, the ongoing negotiations between the US and Iran remain a looming threat for investors. Lipkow explained that the recent back-and-forth has led to noticeable signs of investor fatigue, making it difficult for them to maintain focus on the issue. Despite a potential agreement between the US and Iran, new escalations could occur at various proxy battlegrounds in the Middle East region at any time.
This uncertainty was reflected in the DAX at the start of the new trading week. Investors in Frankfurt are closely monitoring the session in New York. Since traders returned from a long holiday weekend, market sentiment in New York is now being assessed to see how it has shifted since Thursday.
In other markets, the Euro weakened slightly on Monday afternoon, trading at $1.1440, while the Dollar fetched 0.8741 Euros. The price of gold managed to benefit, rising to $4,186 per fine ounce in the afternoon (up 0.6 percent), which translates to €117.64 per gram. In contrast, the oil price saw a sharp decline. The Brent crude from the North Sea cost $77.41 per barrel around 5 PM German time on Monday, representing a decrease of 3.9 percent, or 316 cents, from the close of the previous trading day.
