On Monday, the DAX remained in negative territory during the morning trading session, moving further downward after an initially weak start. By approximately 12:30 PM, the benchmark index was calculated at around 26,345 points, representing a 0.9 per cent drop from Friday’s closing level.
According to Andreas Lipkow, Lead Market Analyst at CMC Markets, the combination of mildly rising oil prices and the increased likelihood of a Fed interest rate hike within two weeks has put a check on the DAX’s existing record run. However, Lipkow remained positive on the market fundamentals, noting that trading volume has increased alongside rising stock prices in recent days, suggesting strong investor appetite. While the current day has proven weaker, it was not accompanied by a rise in trading volume, allowing him to view the current price movements as a healthy consolidation.
Speaking on stock performance, Lipkow pointed out that Continental, VW, and BASF are leading the gains at the start of the week, indicating a continued focus on cyclical sectors. In contrast, traditional AI beneficiaries such as Siemens Energy and Hochtief have been less sought after. Investors are reportedly closely monitoring the situation in the Middle East and the resulting spillover effects related to climbing energy costs. He added that no major shift in market sentiment has yet appeared, and recent positive economic data continues to support the environment for major German stocks. Moving forward, upcoming consumer price reports are expected to be particularly interesting in this context.
In currency markets, the European common currency showed slight strength on Monday afternoon; the Euro traded at $1.1600 against the US Dollar, while the dollar cost 0.8621 Euros. Simultaneously, oil prices saw a sharp increase. Brent crude, the North Sea variety, cost $91.42 per barrel around noon Central European Time-a 3.8 per cent jump compared to the previous day’s close.
