The German stock market index, the Dax, began the trading week conservatively on Monday morning. By 9:30 a.m., the main index was calculated at approximately 25,425 points, marking a rise of 0.1 percent over the previous day’s closing level.
According to Jochen Stanzl, Chief Market Analyst at Consorsbank, global stock exchanges are generally starting the new week weaker. The Dax has settled within a relatively narrow trading range, between 25,200 and 25,600 points. Investor dissatisfaction regarding the lack of progress on the Iranian conflict is palpable. With no significant new drivers at the start of the week, the start of the period is expected to be divided by crucial quarterly earnings reports from the AI sector on Wednesday, the end of the quarter, and German inflation data released on the same day. Stock portfolio adjustments prior to the quarter’s end may provoke individual share price movements that are disconnected from news developments.
Regarding geopolitical risks, Stanzl noted that the mid-term elections could extend the customary period of uncertainty, usually spanning from early October to early November. This uncertainty is growing not only around whether the Republicans will lose one or both chambers of Congress, but also about how the US government will position itself on the crucial issue of energy prices and, by extension, the Iranian conflict. However, the continued Iranian offer suggests that mediation is ongoing, indicating that diplomatic channels remain open-a positive signal.
Despite these factors, Stanzl commented that the oil market lacks a clear direction. Following Saudi Arabia’s restart of the East-West pipeline, new attacks by the Houthis occurred. This results in nervous volatility, and pressure on bond prices and inflation expectations is likely to persist as long as oil prices remain above $100.
In other markets, the European common currency was slightly weaker on Monday morning, with the euro trading at $1.1376 and the dollar trading at 0.8790 euros. The gold price saw a sharp decline; at the morning session, it was trading at $4,160 per troy ounce, representing a 2.9 percent drop, equivalent to 117.56 euros per gram. Meanwhile, the oil price rose significantly. At 9:00 a.m. Central European Time, a barrel of North Sea Brent crude was priced at $106.90, which was 2.4 percent higher than its closing price from the previous trading day.
