The Dax index rose to new highs on Monday, following a positive start to the trading week. By 12:30 pm, the index was calculated at around 22,680 points, a 0.7 percent increase from the previous day’s close. The Dax even briefly reached a new record high of 22,719 points.
Rheinmetall, the defense company, remained at the top of the stock list. Even in the event of a ceasefire in Ukraine, Rheinmetall expects to continue growing due to increasing military expenditures.
“Market participants are still focusing on the stocks of multinational companies” said market analyst Andreas Lipkow. “The focus on index heavyweights and defense stocks remains unchanged at the start of the week.”
“The US holiday today will take a lot of trading dynamics from the European stock markets in the further course of trading. German stocks are currently benefiting from relatively low valuation levels in comparison to the US-based peer groups.”
“It is currently the biggest unknown how long this valuation level can be maintained. The Dax 40 is currently a strongly overbought level and will increasingly be carried by fewer and fewer stocks and sectors” Lipkow said.
The European common currency was slightly weaker on Monday afternoon: one euro was worth around 1.0487 US dollars and one dollar was worth 0.9536 euros.