The German DAX maintained its gains on Monday, holding steady after a positive morning session. By 12:30 PM, the leading German index was calculated at 25,240 points, representing a 0.6 percent increase compared to the previous trading day’s closing level. Siemens Energy, Hannover Rück, and RWE topped the ranking, while Infineon, BASF, and Brenntag finished at the bottom.
Andreas Lipkow, Chief Market Analyst at CMC Markets, stated that the DAX is attempting to stabilize above the 25,000 point mark as the week begins. However, he noted that the initial enthusiasm surrounding a potential return of Russia to international energy markets has faded. Lipkow explained that geopolitical uncertainties are too significant, and the real relief seen in energy prices and bond yields has been insufficient so far.
Focus is now shifting heavily toward the beginning of the financial reporting season. Lipkow added that expectations for corporate earnings are exceptionally high, particularly in the United States. After weeks dominated by rising returns and high energy prices, companies must now provide their own arguments for continued stock price increases. Investors are particularly keen to see signs of further dynamism in the AI and semiconductor sectors, a trend that could impact German shares such as Infineon, Siemens Energy, and Hochtief.
The earnings season is described by the analyst as an “acid test” for the stock markets. Given the high valuations of many companies, Lipkow emphasized that simply meeting expectations is no longer enough; firms must positively surprise to provide investors with new buying arguments.
In other market news, the euro was slightly weaker midday on Monday, trading at 1.1185 US dollars, while the dollar was valued at 0.8941 euros. Meanwhile, oil prices rose, with Brent crude oil on the North Sea trading at approximately $105.70 per barrel around noon, marking a 0.9 percent increase or 96 cents over the previous day’s closing price.
