The market started the trading week on a positive note for the DAX. The leading index was calculated at around 24,190 points by 9:30 a.m., marking a 0.3 percent gain compared to the previous day’s close.
Jochen Stanzl, Chief Market Analyst at Consorsbank, commented that global stock markets experienced a “true buying frenzy” during April. However, he cautioned that the momentum of buying may moderate due to the upcoming U.S. Federal Reserve and ECB meetings, alongside the anticipated flood of earnings reports. While current investor sentiment is anchored by the hope for an end to the conflict with Iran, robust quarterly figures indicating company resilience despite high energy costs, and central banks viewing inflation acceleration as only temporary-and thus not raising interest rates-those hopes seem highly likely to materialize.
Evidence of a rapprochement between Iran and the United States has grown stronger, and the most recently published balance sheets have generally beaten expectations. Despite this positive backdrop, clear signals for immediate interest rate hikes are absent, meaning investors hoping for significantly lower entry prices must be wary that a substantial market slide is unlikely.
Attention is now focused on Wall Street, which is gearing up for the most important week of the earnings season. Roughly half of the S&P 500 companies by market capitalization, in addition to five of the “Magnificent Seven” will release their results. Investors are hoping to see reports that justify the recent strong gains in AI stocks, particularly regarding continued high investment in AI data centers. Stanzl noted that U.S. companies have generally outperformed European counterparts during these releases. The hope is that the U.S. economy is proving better able to withstand high energy costs and supply chain issues than the European one.
He added that the sector could experience heightened volatility, especially around Thursday, when Microsoft, Alphabet, Meta, and Amazon are scheduled to report earnings. Nonetheless, overall stock fluctuations are already considerably lower. While the DAX’s volatility is nearing its initial war-time level, the S&P 500 is significantly below that mark. Stanzl interpreted this as a sign that many investors are becoming increasingly willing to overlook the burdens of the Iran conflict. He stated that the conflict topic is largely settled for most investors; the current focus is merely on when the Strait of Hormuz can be reopened.
Regarding currency markets, the European currency strengthened on Monday morning. The Euro cost $1.1733, making the dollar equivalent to 0.8523 Euros. On commodities, the price of gold saw a slight increase, rising to $4,718 per fine ounce in the morning, a gain of 0.2 percent, corresponding to 129.27 Euros per gram. Meanwhile, oil prices jumped significantly. A barrel of Brent crude from the North Sea cost $107.70 early Monday morning, an increase of 2.3 percent from the previous day’s closing figures.