The DAX began Monday’s trading session with minimal change, maintaining its record high levels. By 9:30 AM, the leading index had been assessed at approximately 25,820 points, slightly up by 0.2% compared to Friday’s closing value. SAP, Rheinmetall, and Scout24 led the performance list, while Infineon, Continental, and Hochtief landed among the bottom decile.
Jochen Stanzl, Chief Market Analyst at Consorsbank, attributed the DAX’s climb to a combination of the federal government’s reform package and diminishing interest rate concerns, noting that this coincided with global major indices entering a consolidation phase. However, he cautioned that the momentum relies on the rapid execution of these reforms; if progress falters or attempts are politically shelved at the last minute, investors will quickly retract their accumulated confidence.
Stanzl also pointed out an inconsistency in market depth: despite the broad interest driving the breakout rally, trading turnovers remained below average and did not reach a new record high last week. He suggested that the relatively weak transaction volume puts a question mark over the sustainability of the DAX’s ascent.
In other markets, the euro weakened slightly on Monday morning, trading at 1.1422 US dollars, while the dollar was worth 0.8755 euros. Meanwhile, oil prices dropped; Brent crude from the North Sea fell to $71.85 per barrel around 9 AM Central European Time, representing a decrease of 0.4% (or 27 cents) from the previous day’s close.
