The DAX opened Monday with a very weak start and continued to fall through the morning, although the losses lessened as the day progressed. By about 12:30 p.m. local time, the index was at 23,190 points, 1.7 % below the close of the previous trading day. The top performers were Rheinmetall, Hannover Rück and Deutsche Börse, while Siemens Energy, MTU and Continental were at the bottom of the list.
According to Andreas Lipkow, chief market analyst at CMC Markets, “The DAX can rebound again in the first two trading hours from the 23,000 level”. The intraday low of 22,920 points did not linger in investors’ minds, and many used the dip to buy German blue‑chip stocks.
Lipkow added that “the sentiment in the derivatives markets is extremely pessimistic and indicates vigorous hedging activity”. “This dampens larger market swings and keeps the DAX stabilised in the 23,000‑point range”. He cautioned that the long‑term impact on the real economy would not be fully reflected until the coming quarters. “Investors are hoping that energy prices will cool down in the coming trading days; if they remain at current levels, the upside could be negative for economic growth”.
At mid‑afternoon Monday, the euro was stronger. One euro bought 1.1566 U.S. dollars, whereas one U.S. dollar could be exchanged for 0.8646 euros.
Brent oil continued to climb sharply. Around 12:00 p.m. German time, a barrel of North Sea Brent fetched about 104.60 U.S. dollars, a 12.8 % rise from the previous day’s closing price.
