The DAX Index Opens 1.41% Lower

The DAX Index fell 102 points or 0.40 percent on Monday to close at 25003 points. Leading the losses are Rheinmetall (-6.51%), Bayer (-3.83%) and MTU Aero Engines AG (-3.81%). Top gainers were SAP (8.03%), Brenntag (1.34%) and RWE (1.06%).

The DAX 40 reversed earlier marginal gains, falling 0.4% to settle at 24,994 on Monday, in line with other European peers, following reports that Iranian negotiators had ceased talks with the US in retaliation for Israeli military operations in Lebanon. Tehran also threatened to fully block the Strait of Hormuz and said it would include the Bab al-Mandab Strait in the Horn of Africa in its escalation response to alleged ceasefire violations. The weekend was marked by a new series of US-Iran clashes, with Israel also expanding military operations in Lebanon. Energy-sensitive industrial stocks, particularly defense and aerospace names such as Rheinmetall (-6.6%), Airbus (-4.3%), and MTU Aero Engines (-3.9%), came under heavy pressure. Other top losers included Bayer (-3.6%), Qiagen NV (-2.7%) and Heidelberg Materials (-2.5%). On the opposite side, software stocks were among the biggest gainers, with SAP surging more than 8%.

Frankfurt's DAX 40 traded slightly above the flatline around 25,120 on Monday, tracking a general cautious mood, amid ongoing tensions and uncertainty over the prospects of a peace agreement to end the Middle East conflict. The weekend was marked by a new series of reciprocal attacks by Iran and the United States, with Israel also expanding military operations in Lebanon. Meanwhile, optimism around artificial intelligence-related investments continued to provide support. SAP and Infineon Technologies led gains, up 2% and 1.8% respectively. On the opposite side, pharma & healthcare stocks underperformed, led by Fresenius Medical Care (-3.1%) and Bayer (-2%).