The German index, the DAX, fell sharply on Monday afternoon after a slightly positive start to the trading week. By 12:30 PM, the main index was calculated at approximately 24,200 points, representing a 0.4 percent decline compared to the closing level on Thursday.
Sector-wise, shares of automotive manufacturers struggled significantly, pressured by recent trade threats emanating from Washington. Other stocks like RWE and Deutsche Post also faced downward pressure. The few winners of the day were shares in Rheinmetall, Brenntag, and Symrise.
Market analyst Andreas Lipkow of CMC Markets noted that after a period of strong US earnings reports, particularly from semiconductor and Big Tech firms, the market is gradually returning to a phase dominated by macroeconomic data. He pointed out that focus is now heavily shifting toward the US labor market and future US monetary policy, citing speeches from eleven US central bank officials.
According to Lipkow, the higher energy costs are unlikely to pass by the real economy unnoticed. Furthermore, the situation in the international fertilizer market is expected to cause price turbulence within the food sector. He advised that these downstream effects make it difficult for investors to grasp the full context of quarterly results and consumer spending, pointing out that changes are already apparent in several minor sectors.
Regarding the DAX specifically, Lipkow stated that market sentiment remains closely tied to developments in the Middle East. While the beginning of the annual general meeting season is channeling funds into shareholder accounts, it remains uncertain whether these funds will be reinvested in European stock markets. Looking ahead, Europe is due to report several key corporate figures this week from companies such as Novo Nordisk, HSBC, and Shell. In the US, Palantir is scheduled to present its earnings and provide updates on its AI sector activities.
In currency markets, the European common currency weakened on Monday afternoon; the euro traded at 1.1696 US dollars, meaning the dollar was available for 0.8550 euros. Meanwhile, the price of gold dropped noticeably, falling 1.6 percent during the afternoon, bringing the price for a fine ounce to $4,540 (equivalent to 124.80 euros per gram). Conversely, oil prices rose sharply. A barrel of North Sea Brent crude traded at $113.50 on Monday afternoon near noon German time, representing a 4.9 percent increase from the previous day’s close.
