At the start of the week the DAX finished higher, closing at 23 564 points – a gain of 0.5 % compared with the previous trading day. After a muted opening, the index moved into the green just before noon and built on its gains as the day progressed.
“Even if only slightly, oil prices eased and negative news from the Middle East has largely stayed away as we enter the third week of the war, the market finds some relief” said Andreas Lipkow, chief market analyst at CMC Markets. “Nonetheless the Frankfurt exchange remains tense, still affected by high energy prices, and investors are uncertain about how the impacts will differ across sectors”. Lipkow added that Friday’s large “expiry” date on the derivatives market forces many investors to decide whether to keep their equity positions and roll over hedging contracts or to reduce net holdings and cut risk-a decision made easier by many already having insured their portfolios.
According to Lipkow, the day’s clear winner was the Commerzbank share. “Unicredit has reiterated its interest in a merger with the bank through its latest tender, but because of significant political considerations it is adopting a more cautious approach, seeking greater input in the current process”. By the close, Commerzbank shares sat at the top of Frankfurt’s price list, while BMW and Beiersdorf lagged behind at the bottom.
Gas prices climbed: a megawatt‑hour of gas delivered in April cost 51 €, a 1 % increase from the day before, implying a consumer price of roughly ten to twelve cents per kilowatt‑hour, including extra charges and taxes, should the level persist.
Oil prices fell sharply: Brent crude at 101.90 USD per barrel on Monday afternoon at 5 pm German time, down 1.2 % (120 cents) from the previous day’s close.
The euro strengthened against the dollar on Monday afternoon: 1 EUR equalled 1.1486 USD, so 1 USD bought 0.8706 EUR.