The DAX opened Monday with slight losses. Around 9:30 AM, the leading index was valued at approximately 24,310 points, marking a 0.1 percent drop compared to the closing level on Friday. Top performers in the index included SAP, Infineon, and Commerzbank, followed by Gea, Hannover Rück, and MTU.
Meanwhile, expert Thomas Altmann of QC Partners provided commentary on global uncertainties. Regarding the situation in the Middle East, he stated that Iran has reacted to the latest peace proposal from the US, noting that differences between the two nations remain significant, and lasting peace is still far off. According to Altmann, the markets had priced in a quick resolution, but now that quick peace is being unpriced. Further complicating the picture, oil prices are rising again, and interest rates are also increasing.
Altmann suggested that “euphoria is fading, and risk aversion is increasing”. He warned that the longer the lull period between the conflict states continues, the greater the impact will be on the global economy.
On a technical note, the DAX had lost over one percent on each of the last two trading days. This move positioned the index closer to the critical 200-day trend line. Altmann cautioned that crossing this important trend line again would likely be interpreted by many investors and technically oriented models as a negative signal.