The DAX experienced a slight increase at the start of the week. By the close of trading on Xetra, the index was calculated at 25,114 points, marking a gain of 0.2 percent compared to the previous trading day.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, bargain hunters pushed the DAX back above the 25,000 mark following a deep red start. A key factor contributing to this rebound was the strong quarterly results from the Taiwanese semiconductor conglomerate TSMC. Record revenues signal an ongoing demand for AI-capable semiconductors, which initially eased concerns about a cyclical peak.
Lipkow also noted that many investors had recently taken sideways positions or hedged their holdings in the derivatives market over the past few weeks. This has led to a noticeable deceleration in selling pressure and mechanical movements in the market.
Within the DAX, investors favored defensive sectors and industries. This trend saw shares in companies like Deutsche Börse, Siemens Healthineers, and Deutsche Telekom featured among the winners. European communication stocks have been particularly favored since last week, driven by speculation regarding consolidation and acquisitions within the sector.
In currency markets, the European common currency saw a slight dip on Monday afternoon. The euro traded at $1.1400 against the US dollar, meaning a dollar fetched 0.8772 euros.
On the commodities front, the price of gold was in a strong decline, falling 2.6 percent to $4,015 per fine ounce in the afternoon. This translated to a price of 113.22 euros per gram. Meanwhile, the price of oil climbed significantly. By 5 PM German time on Monday afternoon, a barrel of North Sea Brent crude cost $79.32, marking a 4.4 percent increase from the close of the prior trading day.
