The DAX started the trading day on Monday with minimal change. Around 9:30 AM, the benchmark index was calculated at approximately 24,825 points, which was 0.02 percent below Friday’s closing level. RWE, Siemens Energy, and Fresenius led the stock list, while MTU, Vonovia, and Continental were at the bottom.
Jochen Stanzl, Chief Market Analyst at Consorsbank, remarked that the market mood at the start of the week was being weighed down by a renewed rise in oil prices and growing concerns over escalation in the Middle East. He noted that investors had entered a reaction mode: stocks were not being sold purely preventively, but the readiness to liquidate holdings was in place should quarterly figures or news from the Middle East prove unfavorable. Despite this cautious sentiment, the willingness to build new speculative positions remained limited.
Stanzl further elaborated that the escalation in the Middle East was causing uncertainty among participants, who were already grappling with the question of whether the massive investments made by major tech corporations would actually generate the returns priced into the stocks. The upcoming report season will serve as a critical test to determine if current stock valuations are overly inflated or if they accurately reflect the fundamental developments within the sector.
Regarding currency movements, the European common currency was slightly stronger on Monday morning. The Euro traded at 1.1439 US dollars, while the US dollar was consequently valued at 0.8742 Euros. Meanwhile, the price of oil rose sharply. Around 9 AM Central European Time, a barrel of Brent crude priced in the North Sea traded at $90.91, a 3.2 percent increase from the close of the previous trading day.
