The Dax index started the trading day on Monday with a minimal change. By 9:30 am, the benchmark had been calculated at around 22,560 points, just above the closing level of the previous Friday.
The top performers in the Dax index were shares of Rheinmetall, MTU Aero Engines and Airbus, while those of Vonovia, Deutsche Bank and BASF lagged behind. Rheinmetall’s stocks alone gained in the double digits.
According to Mark analyst Jochen Stanzl of CMC Markets, the recent developments can be attributed to the European plan to support Ukraine, in addition to the Wall Street’s closing rally. “Defense stocks are already strong in pre-market trading” Stanzl commented.
Stanzl further stated, “After the White House’s recent controversy, the fear of the United States withdrawing its support for Ukraine has only become more likely. Europe will have to take on a greater share of the burden and defense companies will not have to worry about contracts in the coming years, making these stocks the absolute favorites of investors.”
The European common currency was slightly stronger on Monday morning, with one euro costing 1.0404 US dollars and one dollar being equivalent to 0.9612 euros.
Gold prices rose slightly, with a troy ounce being worth 2,860 US dollars, equivalent to 88.37 euros per gram, a 0.1% increase.
Meanwhile, the oil price increased, with a barrel of the North Sea’s Brent crude costing around 73.02 US dollars at 9 am German time, a 21-cent or 0.3% increase from the previous trading day’s close.