The Dax has started the trading week strongly on Monday morning. At around 9:30 am, the leading index was calculated at around 23,875 points, 1.6 percent above the previous Friday’s closing level.
In the midst of the opening trade, the long-awaited news that China and the US want to temporarily suspend their respective tariffs for 90 days hit the market. Chinese stock indices and US stock futures had already risen in anticipation of such news. US government bonds fell. “There is a Risk-on mood” said Thomas Altmann of QC Partners.
“Upcoming negotiations between Russia and Ukraine over a possible long-term peace are also welcomed at the stock exchanges.” The ceasefire between India and Pakistan is also contributing to good mood and rising prices on Asian stock exchanges.
The decisive question for the start of the new week for the Dax is: How high can it still go? “It is difficult to measure the Dax with normal standards at the moment. With a year-on-year increase of 175 percent, Rheinmetall is the absolute top performer. And despite its index weighting of less than four percent, Rheinmetall alone accounts for more than a third of this year’s Dax development. Rheinmetall alone explains why the Dax has developed so much stronger than all other European indices. Because eight of the 40 Dax stocks have been in negative territory since the beginning of the year.”
“The YTD development of Rheinmetall is also outstanding worldwide: Rheinmetall is the best stock in the STOXX Global 1800 since the beginning of the year. And this index includes the 600 largest companies from Europe, America and Asia/Pacific, totaling 1,800 stocks” said Altmann.
The European common currency was weaker on Monday morning: One euro cost 1.1144 US dollars and one dollar was accordingly for 0.8973 euros.
The gold price was down sharply, with a fine ounce costing 3,236 US dollars (-2.6 percent). This corresponds to a price of 93.37 euros per gram.
The oil price, on the other hand, rose sharply: A barrel of North Sea crude cost 65.52 US dollars at 9 am on Monday morning, German time, which was 2.5 percent more than the previous day’s closing price.