The Dax has continued its strong start to the week, remaining in the green until midday on Monday. At around 12:30 pm, the index was calculated at around 23,715 points, 0.9 percent above the closing level of Friday. At the top of the list were Infineon, Daimler Truck and BASF, while Rheinmetall, Vonovia and Eon were trading weaker than the trend.
Shortly after the Frankfurt trading opened, the Dax reached a new all-time high of 23,911 points. “The euphoria over a temporary deescalation in the trade conflict between the USA and China has been released in positive market reactions up to the new record level” said market analyst Andreas Lipkow. “The two parties have agreed to a temporary, limited reduction of the reciprocal tariffs for 90 days. However, the tariff issue remains present in the stock markets, as the situation is temporarily resolved. The ongoing negotiations with other countries remain uncertain. The current low tariffs will also have economic consequences for China. Therefore, it remains to be seen whether the current euphoria is justified.”
“Semiconductor companies are emerging as the winner sector and investors are also showing strong interest in the cyclical values from the automotive and chemical sectors. Defense stocks are taking a more cautious approach at the start of the week. It is an extremely exciting time on the market with strong price movements and potential twists and turns” said Lipkow.
The European community currency was weaker on Monday afternoon: One Euro was worth 1.1106 US Dollars, while one Dollar was worth 0.9004 Euros.
The gold price was in free fall, with a fine ounce trading at 3,215 US Dollars (-3.3 percent). This is equivalent to a price of 93.06 Euros per gram.
The oil price, on the other hand, was significantly higher: A barrel of North Sea Brent crude oil was trading at around 65.65 US Dollars at 12 pm German time on Monday afternoon, which is 2.7 percent higher than the closing price of the previous trading day.