The DAX opened Monday with significant gains. By 9:30 AM, the leading index was trading at approximately 25,405 points, marking a 1.2 percent increase over the closing level on Friday. SAP, Zalando, and MTU led the performance board, while Hochtief, RWE, and Eon recorded declines.
Thomas Altmann of QC Partners commented on the positive market mood, stating, “The USA and Iran paused their mutual attacks for the second night in a row. This fuels hope for peace.” The markets have positively reacted to this development, as oil and gas prices are dropping, interest rates are falling, and stock prices are rising. “The second night of peace in a row brings back a degree of confidence and optimism.”
Altmann added that the DAX is entering a new week in its pursuit of the 25,000 mark. This psychologically crucial threshold was crossed daily between Wednesday and Friday. Today, he noted, the DAX has the opportunity to utilize the positive sentiment and move further away from the 25,000 level. Previously, there had been profit-taking every time the index surpassed 25,000. “It will now be crucial whether this renewed confidence attracts new buyers.”
Meanwhile, the European common currency showed some strength on Monday morning; the Euro was priced at 1.1406 US dollars, meaning the dollar was available for 0.8767 Euros. The price of oil dropped significantly, however. Around 9 AM German time, a barrel of North Sea Brent crude cost 90.29 US dollars-a decrease of $6.49, or 6.7 percent, compared to the close of the previous trading day.
