The Dax saw a significant gain at the start of the week. By the close of Xetra trading, the index stood at 25,575 points, marking an increase of 1.1 percent compared to the previous trading session.
On Monday, Infineon, Siemens, and Commerzbank led the rise in the stock chart, while Fresenius, Volkswagen, and Vonovia were among the biggest performers.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, the strong market support was primarily provided by falling oil prices. He noted that since central banks stressed their focus on fighting inflation last week, investors welcomed any easing of energy price pressures. Monetary policy is closely monitoring inflation, and the easing of prices from what had been the biggest recent price driver is perceived as a benefit. Decreasing oil prices are described as a “balm” for the stock market because they curb inflation fears and reduce pressure on central banks.
In parallel, investors kept a close eye on the upcoming meetings between the United States and China. Lipkow pointed out that the preliminary talks over the weekend were constructive and offered initial relief from geopolitical tension. However, he added that this was not enough to drive widespread buying interest at the start of the week; investors now await substantive results stemming from the improved conversational atmosphere.
Focusing on individual stocks, Vonovia was highlighted following the elections in Berlin and Mecklenburg-Vorpommern. The resulting changes in the political landscape have introduced new uncertainties regarding future housing policy, placing pressure on the company’s stock. For real estate corporations, Lipkow emphasized that political predictability is nearly as crucial as interest rate movements. When that fails to materialize, the risk premium on the exchange increases.
In global markets, the European common currency showed some weakness on Monday afternoon, with the Euro trading at $1.1469, and the dollar available for 0.8719 Euros. Gold prices also declined; in the afternoon, a fine ounce was traded at $4,349, a drop of 0.7 percent, which corresponds to a price of 121.91 Euros per gram. Meanwhile, crude oil dropped sharply. A barrel of North Sea Brent crude was priced at $100.30 around 5 p.m. German time, representing a decrease of 362 cents, or 3.5 percent, from the previous day’s close.
