The DAX index experienced a decline at the start of the trading week, closing at 24,160 points – a 0.4% decrease compared to the previous day’s close.
Zalando, Sartorius and Merck were among the companies with the lowest-performing shares. Countering the overall trend, Commerzbank, Rheinmetall and Eon recorded gains.
Market analyst Andreas Lipkow attributed the cautious trading environment to ongoing uncertainty surrounding future trade relations between Europe and the United States. “Market participants are still hoping that European representatives will be able to position themselves well in the negotiations concerning future trade relations with the USA” he stated.
He further commented on the market’s reaction to the recently announced US tariffs on European goods, including automobiles, automotive parts and steel. “The response to the US duties can be described as symbolic. While an escalation is being avoided, European representatives also want to display strength.
Lipkow cautioned that this approach has historically proven ineffective. “This dynamic hasn’s worked in the past and won’t work going forward. As long as the situation doesn’t escalate further, investors are observing events from a distance and are not panicking.
The Euro strengthened slightly during Monday afternoon, trading at $1.1693, while the US Dollar was valued at €0.8552.
Oil prices also saw a significant drop, with a barrel of Brent North Sea crude trading at $69.43 – a decrease of 93 cents or 1.3% compared to the close of the previous trading day.