The DAX extended its morning gains, reaching its peak for the day around lunchtime on Monday. By 12:30 PM, the leading index was calculated at approximately 26,015 points, marking a gain of 1.5 percent compared to the previous day’s closing level.
Jochen Stanzl, Chief Market Analyst at Consorsbank, noted that a projected decline in oil prices is benefiting the cyclical, energy-dependent industries within the DAX. However, he cautioned that the geopolitical situation remains fragile, citing unanswered questions related to the conflict in Iran. Despite this uncertainty, investors appear confident, though Stanzl observed that there is no sign of speculative euphoria. He views this balanced development positively, describing it as a welcome contrast to the sentiment-driven trading seen in chip and AI stocks.
Stanzl elaborated that investors hope companies will demonstrate the same resilience against geopolitical risks and high energy prices during the reporting season that they displayed three months prior. If companies do not increase their forecasts, investors at least hope to see proof that they have brought costs under control and have adapted to the uncertain geopolitical landscape. Ultimately, investors are looking for signs that businesses are ready for new growth once risks around the Strait of Hormuz and in the Iranian conflict subside.
From a technical standpoint, the DAX appears solid overall. Stanzl mentioned that the index achieved its highest monthly closing value in July. He sees a steady, subtle upward trend in the DAX and expresses hope that the index could finally break out of its one-year sideways range.
Meanwhile, the Euro weakened on Monday afternoon, trading at $1.1523 per euro, while the dollar fetched 0.8678 euros. Gold prices benefited, rising 0.3 percent to $4,053 per fine ounce in the afternoon, which equates to €113.10 per gram.
In contrast, the price of oil fell sharply. Around 12:00 PM German time on Monday afternoon, a barrel of North Sea Brent crude cost $83.72, representing a drop of 4.8 percent or 421 cents from the previous day’s close.
