The German DAX index maintained a positive trajectory on Monday, building upon an optimistic start to the trading day and remaining in the green throughout the morning session. As of 12:30 PM local time, the benchmark index reached approximately 23,935 points, representing a 0.6 percent increase compared to Friday’s closing level.
Leading the gains were Commerzbank, Siemens Energy and Munich Re, while Merck, Porsche and Sartorius concluded the top performers.
Market expert Andreas Lipkow attributed the initial positive reaction to an announcement suggesting that negotiations regarding US tariffs have been postponed until August 1st, stemming from a social media communication by the US President. This move, he explained, aims to provide trading partners additional time to engage in discussions. “While the European financial market is responding favorably to this news, it also underscores the complexity and potential length of these negotiations” Lipkow stated.
Despite the postponement, Lipkow cautioned that tariffs are still anticipated, though their ultimate scale and scope remain unclear. He also noted that industrial order intake in Germany fell short of market expectations. Producer prices within the EWU, however, decreased in line with prior forecasts. He expressed that a sense of nervousness will likely persist within financial markets.
The euro weakened against the US dollar on Monday afternoon, trading at $1.1730, with the dollar fetching €0.8525.
Crude oil prices also saw an increase, with a barrel of Brent North Sea crude costing $68.73 around midday local time – up 43 cents, or a 0.6 percent increase, compared to the previous trading day’s closing price.