The DAX remained in positive territory on Monday, maintaining its gains after a moderately favorable start to the trading day. Around 12:30 PM, the leading index was calculated at approximately 25,195 points, which represented a gain of 0.4 percent compared to Friday’s closing level. SAP, Infineon, and RWE topped the list of performers, while Rheinmetall, Bayer, and Zalando finished in the pack.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that investors in Frankfurt are still struggling to apply the FOMO excitement seen in the technology sector-particularly concerning AI and semiconductors-to the German stock market. Only Infineon was able to benefit from this positive sentiment. Furthermore, investor focus was heavily drawn to the shares of Siemens Energy and Siemens.
Lipkow also mentioned that worries about a continued war in Iran are easing at the start of the week. However, he cautioned that it is questionable whether this easing is justified at present. He stated that it remains unclear whether a sustainable peace in the Middle East will materialize following the current step-a 60-day ceasefire. This uncertainty is reflected in the energy prices, which have not truly managed to disconnect from their high levels. While extreme levels have been left behind, the risk of a persistent inflationary rate within the financial markets remains latent.
The market expert added that May has proven to be a relatively good month for the stock exchange, and investors showed no tendency to withdraw from the markets at the beginning of the new month. Given the current environment, the themes generally do not encourage taking risks over the summer months. Nevertheless, the fact that the DAX continues to remain close to its all-time high suggests a high level of resilience among investors against the current high valuations and risks.
Meanwhile, the European community currency weakened slightly during Monday’s lunchtime trading: the Euro traded at $1.1649, meaning a dollar cost 0.8584 euros.
Crude oil prices increased, too. A barrel of North Sea Brent oil was priced at $93.94 around noon German time, marking a 3.1 percent rise from the close of the previous trading day.
