The DAX opened its trading session on Monday with losses, following the preliminary failure of negotiations between the United States and Iran. Around 9:30 AM, the benchmark index was calculated at approximately 23,560 points, marking a 1.0 percent drop from the closing level on Friday. Top performers on the list included Rheinmetall, Brenntag, and RWE, while the laggards were MTU, Commerzbank, and Siemens Energy.
Jochen Stanzl, Chief Market Analyst at Consorsbank, commented that the collapse of the US-Iranian negotiations this Monday morning was as surprising as the markets’ comparatively calm reaction. He suggested that investors appear to be banking on the idea that the end of the war is closer than its beginning, as long as the ceasefire holds. Many investors likely hoped for the resumption of talks, especially since the ceasefire remains in effect until Tuesday of next week, despite new threats from US President Trump.
Furthermore, investors’ attention is turning to the upcoming US reporting season. They are hoping for greater clarity regarding how the Iran conflict and high energy prices will affect business operations. It remains unclear when oil and gas supplies from the Middle East might resume smoothly. Stanzl added that elevated energy prices present a headwind for the profit development of most companies, and how significant this dampening effect is-and which companies might be less affected-will be crucial for single-stock price movements in the coming weeks.
Meanwhile, the European common currency was slightly stronger on Monday morning: the Euro cost 1.1689 US dollars, meaning a dollar was priced at 0.8555 Euros. Oil prices rose sharply; around 9 AM German time, a barrel of Brent crude from the North Sea cost $101.60, a 6.7 percent increase compared to the close of the previous trading day.