The German DAX index commenced the trading day on Monday with modest gains. By 9:30 AM local time, the benchmark index was calculated at approximately 24,050 points, a slight increase of 0.1 percent above Friday’s closing level. Leading the list of top performers were Zalando, Infineon and Sartorius, while Deutsche Bank, Bayer and Merck concluded at the lower end of the rankings.
“Just as with the weather, we’ve been experiencing a period of positivity in the stock markets” stated Thomas Altmann of QC Partners. This sentiment reflects the upward trajectory of the S&P 500 and Nasdaq 100, which both reached record highs on Friday. The continued weakness of the US dollar is contributing to this performance, enhancing the attractiveness of US equities for international investors.
Altmann further emphasized, “The news landscape for the stock markets remains favorable”. Progress is being made towards trade deals, with both the US and Canada edging closer to an agreement and positive developments continuing to be observed in relations between the EU and the US. Furthermore, Donald Trump’s proposed economic stimulus plan, often referred to as the “Big Beautiful Bill” is gaining more concrete form.
However, the market expert cautioned, “The markets are currently celebrating these positive developments, but the stock market is like the weather – eventually, the next downturn arrives”. He pointed out that current valuations are factoring in a scenario representing, in many ways, the most optimistic environment possible. Any relatively minor negative news could subsequently shift market sentiment.
The day’s key data release will be the preliminary inflation figures for June, scheduled to be published by the Federal Statistics Office at 2:00 PM local time.
The European currency strengthened slightly earlier on Monday, with one Euro costing 1.1736 US dollars and one US dollar being equivalent to 0.8521 Euros.
Meanwhile, oil prices experienced a slight decrease. Brent crude, a benchmark grade of North Sea oil, was trading at $67.65 per barrel around 9:00 AM local time, representing a decrease of 12 cents, or 0.2 percent, compared to the previous trading day’s closing price.
