German investors found the market volatile on Monday. The DAX index showed little positive momentum at midday, remaining narrowly in negative territory following a weak start to trading. By 12:30 PM, the leading index was calculated at approximately 24,310 points, marking a decline of 0.1% from the previous trading day’s closing level. Among the top performers noted were BASF, Brenntag, and Commerzbank, while GEA, Hannover Rück, and MTU were also featured in the price lists.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investment decisions are currently balanced between the seasonal withdrawal effect typical of May and geopolitical developments in the Middle East. Investors continue to focus on forthcoming macroeconomic data and major political meetings, such as the planned discussions between US President Trump and Chinese President Xi Jinping starting Thursday. Further complicating the outlook is the influence of Kevin Warsh, the new central bank head, who is expected to significantly shape US monetary and interest rate policies beginning Friday.
Lipkow added that within Europe, investor focus is shifting toward defensive sectors, driving up interest in stocks like Deutsche Börse, Vonovia, and Deutsche Post. Conversely, caution is being advised regarding sectors including GEA, Siemens Energy, and Rheinmetall. Overall, he pointed to what he views as classic sector rotation within the German market, driven by the unsettled situation in the Middle East, which currently provides little room for sustained injections of liquidity into the DAX.
In related markets, the Euro strengthened slightly by noon, where one Euro cost 1.1764 US dollars, meaning a dollar was priced at 0.8501 Euros. Meanwhile, oil prices saw an increase; the price for a barrel of North Sea Brent crude was reported at $103.50 around German noon, representing a jump of 2.2% compared to the previous day’s close.
