The German stock market benchmark, the DAX, experienced a subdued start to the trading week on Monday, ultimately returning to levels seen at the close of the previous Friday. By midday, the index was calculated at approximately 24,388 points, marginally above the previous day’s closing value.
BMW led the gains among listed companies, followed by the reinsurance firms Munich Re and Hannover Re. Conversely, shares of BASF, Bayer and Infineon recorded declines.
Market analyst Andreas Lipkow attributed the market’s hesitation to a limited economic news agenda and ongoing concerns surrounding the political situation in France. “Market participants are assessing the implications of events in France” Lipkow commented, noting that the resignation of Prime Minister Lecornu had triggered profit-taking, particularly among European banking and financial institutions.
Investors are again scrutinizing France’s efforts to address its financial stability, leading to a heightened sense of uncertainty and potential contagion effects on other European financial entities. The relatively quiet news environment is amplifying this focus.
The Euro experienced a slight depreciation against the US dollar, trading at $1.1657, equivalent to €0.8579 per dollar.
Gold prices saw a significant boost, reaching $3,940 per fine ounce (+1.4%), translating to €108.68 per gram.
Oil prices also demonstrated a notable increase; a barrel of Brent crude North Sea oil fetched $65.69, reflecting a 1.8% increase compared to the close of the previous trading day.