The DAX saw a strong rise at the start of the week, closing the day’s trading at 24,307 points on Xetra, marking an increase of 1.5 percent compared to the previous day.
Andreas Lipkow, Chief Market Analyst at CMC Markets, attributed the significant turnaround to news concerning an Iranian five-point plan aimed at ending the conflict. He noted that investors, having started the day’s trading in a notably negative position, took advantage of dips below 24,000 points early on, gradually boosting the index from its opening losses into positive territory. This cautious approach paid off when news of a potential compromise between the U.S. and Iran circulated at noon, pushing the DAX momentarily above 24,400 points.
Technology remains a key pillar supporting the market, with stocks like Infineon and SAP holding up well. Furthermore, investor interest is being drawn to the AI sector, demonstrated by the performance of Siemens Energy and Siemens. This has fostered a growing expectation among investors that the situation in the Middle East is set to calm down. Although this optimism has been building for several weeks, today’s news provided fresh momentum to the positive sentiment.
The extended rally saw the number of leading stocks in the DAX expand. Rheinmetall led the group, while Deutsche Telekom and SAP also featured prominently at the start of the week. However, caution prevailed among investors, particularly regarding cyclical sectors and automobiles. As a result, the shares of major car manufacturers-VW, Mercedes-Benz, BMW, and Porsche-were found in the negative zone at the end of the DAX.
Despite the positive movements, Lipkow cautioned that overall market sentiment remains wary regarding the possibility of a swift peace in Iran. He added that rising energy prices are dampening consumer behavior through inflation concerns, fueling fears of an ongoing economic slowdown in Germany.
On a broader economic note, the Euro strengthened on Monday afternoon, trading at $1.1648 per dollar.
Key commodity prices also reported movements. Gold saw a slight increase, reaching $4,544 per fine ounce in the afternoon (+0.1 percent), equivalent to €125.42 per gram. Meanwhile, oil prices rose considerably; a barrel of the Brent crude grade cost $110.80 at Monday afternoon, representing a 1.4 percent jump from the previous close.