The Dax began Monday’s trading session with gains. Around 9:30 a.m., the leading index registered approximately 25,220 points, marking a 0.5 percent rise from Friday’s closing level. RWE, Commerzbank, and Volkswagen topped the list of performers, while Infineon, Brenntag, and BASF ranked near the bottom.
Andreas Lipkow, Chief Market Analyst at CMC Markets, stated that a decline in energy prices coupled with easing trade tensions between the European Union and China has provided an initial tailwind for the Dax. Although the possibility of Russian diesel shipments reaching the United States temporarily alleviates pressure on international energy markets, the political ramifications remain sensitive, as this development could alter the balance of power in the Ukraine war. Furthermore, the situation in the Middle East continues to be strained.
The analyst added that this relief in energy pricing is currently more beneficial to stock markets than some strong economic figures. He explained that it reduces pressure on inflation, central banks, and potentially on bond yields. However, he cautioned that the drop in energy prices does not signal a complete end to the numerous other risks facing the markets.
While trading is likely to remain quiet initially today due to a lack of significant economic data and limited activity in the US, Lipkow warns that this calm might be deceptive. He notes that with the official start of the US earnings season, investors are facing a potentially turbulent week. He emphasized that the major banks, in particular, will need to demonstrate whether their corporate performance truly justifies the high market expectations.
