Germany’s DAX lost 0.24% by midday on Monday, settling at 25,983 points and slipping back under the psychologically important 26,000‑point level it had reclaimed last week. The index had risen to 26,167 points on Friday before retreating from its 21‑day moving‑average trend line. The all‑time high of 26,618 points, set a week and a half earlier, remains out of reach.
In contrast, the MDAX of mid‑cap stocks edged up 0.23% to 32,429 points, while the Euro Stoxx 50 slipped about 0.1%. The divergence reflects strong gains in technology‑heavy Asian markets, notably Japan and South Korea, against a backdrop of elevated oil prices and a U.S. market holiday that removed a key catalyst.
Brent crude for November delivery traded just under $97 per barrel, a level sustained by ongoing tensions in the U.S.–Iran conflict. An OPEC+ core group of seven members confirmed over the weekend that it will not raise production targets in October. Goldman Sachs’ co‑head of global commodities research, Daan Struyven, told Bloomberg TV that a scenario of intensified ship attacks could push Brent toward $120 a barrel.
Investors are also focused on central‑bank policy. The European Central Bank is expected to lift its key rate by 0.25 percentage points on Thursday, reaching 2.5%, a move that Metzler Asset Management’s chief economist Edgar Walk describes as “broadly consensus”. In the United States, market participants anticipate a Federal Reserve rate hike next week, following a weaker‑than‑expected jobs report on Friday and pending inflation data.
German equities showed sectoral splits. Semiconductor stocks led gains; Infineon rose 2.9% after a recommendation from Warburg Research, while fellow chip‑maker Elmos added 2.6%. Suppliers Suss Microtec, Aixtron, Jenoptik and Siltronic each climbed up to 3.5%. Energy‑technology firms Siemens Energy and construction group Hochtief attracted buying interest, buoyed by expectations of higher demand for data‑center power amid the AI boom.
In the satellite sector, OHB, listed in the SDAX, continued its recovery from a year‑low with a 5.8% rise, following Isar Aerospace’s successful test flight that placed five satellites into orbit.
Analyst upgrades also moved stocks. UBS upgraded EON to “buy”, lifting the utility 1.6%, while RWE gained 2.3%. Bank of America’s recommendation for wind‑turbine maker Nordex sparked an 11.2% surge, the biggest gain in the MDAX. Conversely, the interest‑sensitive real‑estate segment faced pressure: Vonovia fell 2.4% after Goldman Sachs analyst Jonathan Kownator withdrew his buy rating, citing a cautious tone at a recent industry conference. LEG, TAG Immobilien and Aroundtown were among the MDAX’s larger decliners.
Political headlines in Germany – the AfD’s win in Saxony‑Anhalt and the CDU’s setbacks – added to market chatter, but monetary‑policy expectations remained the primary driver for investors.
The DAX’s retreat below 26,000 points underscores the market’s sensitivity to oil price dynamics and upcoming ECB and Fed decisions, while sector‑specific catalysts continue to shape individual stock performance.
