European markets opened the trading week with significant losses, reflected in a decline for the DAX index. At the close of Xetra trading, the index stood at 23,970 points, representing a decrease of 1.0 percent compared to the previous day’s closing value.
Market analysts attribute the downturn to a shift in sentiment surrounding the ongoing trade negotiations between Europe and the United States. Initial optimism appears to have faded, replaced by a sense of surprise and caution among investors.
While some sectors are demonstrating resilience, others are facing headwinds. The automotive industry, in particular, is anticipated to experience continued challenges, prompting market participants to reassess their positions. Shares in major automakers including Volkswagen, Porsche, BMW and Mercedes-Benz saw divestment as a result.
Conversely, shares in Infineon and Merck are drawing increased attention, highlighting a search for more stable investment opportunities. Defensive sectors are also experiencing higher demand.
The reaction of US investors to the trade agreement will be closely monitored as trading continues on Wall Street.
Beyond Europe, the stance of Chinese negotiators in the US trade discussions is expected to significantly impact the broader European economic outlook in the coming days.
The Euro weakened noticeably on Monday afternoon, trading at 1.1623 US dollars, a decrease of 1.18 percent. Consequently, the dollar was valued at 0.8604 Euros.
Gold prices also showed weakness, with a fine ounce trading at 3,316 US dollars, representing a decrease of 0.6 percent, or 91.73 Euros per gram.
In contrast to the decline in precious metals and equities, the oil price saw a substantial increase. Brent crude, a benchmark for North Sea oil, reached 69.82 US dollars per barrel, an increase of 2.0 percent compared to the previous day’s close.