The German DAX index remained largely unchanged at the start of the week. By the close of trading on Xetra, the index was calculated at 24,350 points, representing a modest gain of 0.1 percent compared to the previous trading day.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors in Frankfurt are currently navigating a period of tension stemming from the seasonal exit effect in the stock market during May, coupled with ongoing geopolitical events in the Middle East. He noted that the resurgence in oil prices repeatedly reignites inflation concerns, leading to general caution on the exchange floor.
This dynamic resulted in a bifurcated market picture within the DAX. Instead of seeing wholesale repositioning, investors engaged in classic sector rotation, which provided limited space for sustainable capital inflows. During the day, energy stocks and certain pharmaceutical companies saw buying interest, while shares of BASF and Brenntag were also highlighted as beneficiaries. Conversely, stocks from Rheinmetall and Gea continued to face selling pressure. Lipkow observed that the majority of investors are adopting a defensive and risk-averse strategy while still desiring potential capital gains. This approach allows them to maintain their investment levels while adjusting risks more effectively.
Looking ahead, the market remains highly focused on macroeconomic data and upcoming political schedules. These include the planned meeting between US President Donald Trump and Chinese President Xi Jinping starting Thursday. Furthermore, Lipkow pointed out that beginning Friday, Kevin Warsh, the new Federal Reserve Chairman, is expected to significantly shape US money and interest rate policy.
In other commodity and currency markets, the Euro saw a slight increase on Monday afternoon, trading at 1.1781 US dollars. Correspondingly, the dollar was valued at 0.8488 euros. Crude oil posted a significant gain, with a barrel of Brent crude trading at $103.60 on Monday afternoon, marking a 2.3 percent increase from the previous day’s close. Meanwhile, the price of gold also benefited, climbing $4,731 for a fine ounce on Monday afternoon, representing a gain of 0.3 percent, which equates to €129.10 per gram.