The DAX saw little movement at the start of the week. As of the close of trading on Xetra, the index stood at 26,106 points, representing a gain of 0.1 percent compared to the previous day.
Andreas Lipkow, Chief Market Analyst at CMC Markets, stated that the movement in the index was minimal at the beginning of the week. However, he noted that the positive aspect is that the index remained stable above the 26,000-point level, despite increasing uncertainties on both geopolitical levels in the Middle East and economic fronts, such as new tariff threats from the White House. The market was supported by falling crude oil prices and a weaker dollar against the euro. These two developments reduce potential inflation risks and alleviate investor concerns about a central bank needing to react aggressively in its monetary policy.
Despite the stability, investors remain on the sidelines ahead of several upcoming events, including Nvidia’s earnings reports, PCE deflator data, and the central bank meeting in Jackson Hole. Lipkow cautioned that the risk is high-either being caught off guard by disappointing news or missing out on profits if prices continue to climb. Therefore, waiting for the events and repositioning according to the outcomes is advisable.
The biggest unknown this week, according to Lipkow, is undoubtedly the quarterly figures and outlook from the AI high-flyer, Nvidia, especially regarding insights into data center developments. Skepticism over the high investments made by AI companies in infrastructure, combined with elevated bond yields, is currently causing caution among investors in technology stocks. Furthermore, the current weakness of the dollar is leading to relatively lower profits for foreign investors in US equities. A sustained downward trend of the greenback could potentially make these investments less attractive in the medium to long term. While overall market impulses remain modest, Lipkow emphasized that the few scheduled events carry significant potential for surprises in all directions.
In other market segments, the European common currency was slightly weaker on Monday afternoon; one euro was trading at 1.1669 US dollars, meaning one dollar was priced at 0.8570 euros.
Gold posted a solid gain, with the price for a fine ounce reaching US$4,662 in the afternoon (+1.3 percent), translating to 128.45 euros per gram. Meanwhile, oil fell sharply. The price for a barrel of North Sea Brent crude was nearly US$92.41 at 5 PM German time on Monday, a decrease of 2.1 percent or 198 cents from the previous day’s closing price.
