The German market index, the Dax, declined throughout Monday, remaining in negative territory following a weak start. Around 12:30 PM, the main German index was calculated at 25,460 points, representing a 0.4 percent drop compared to the previous day’s closing level. SAP, Bayer, and Deutsche Börse topped the list of performing stocks, while Infineon, Hochtief, and Siemens Energy finished at the bottom.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that investors in Frankfurt are clinging to the hope of a stabilizing German economy, using this as a reason to purchase companies listed in the Dax. However, escalating oil prices are causing increasing skepticism regarding future inflation trends and the subsequent impact on consumer spending and interest rates.
Lipkow further commented that the Brent crude oil futures in the North Sea are currently trading significantly above the $100 psychological barrier and appear difficult to stop. Given the tense situation in the Middle East, investors are focusing their selective purchases on defensive sectors. They aim to participate in potential gains within the Dax without being unduly affected by the negative consequences of higher energy costs.
Meanwhile, the euro weakened midday on Monday. One euro cost $1.1541, meaning the dollar was trading for 0.8665 euros. The climb in oil prices was even more substantial; around 12 PM German time, a barrel of North Sea Brent crude cost $107.70, which was 2.9 percent higher than the close of the previous trading day.
