The DAX Index Closes 0.53% Lower

Frankfurt’s DAX 40 gained ground on Monday, rising about 2% to close at 25,394, its highest level since January, outperforming its European peers. Markets welcomed signs of progress toward a US–Iran peace deal that could lead to the reopening of the Strait of Hormuz and a stabilization of global energy flows. US President Trump said that progress had been made on a draft agreement with Iran but that he would only accept a “great deal for all or no deal at all”, while Iranian officials confirmed talks were underway, prompting a sharp decline in oil prices and easing inflation worries. Energy-sensitive industrials, tech, retailers, banks and travel-related stocks were the top performers. MTU Aero Engines led the way, soaring 6%, followed by Daimler Truck (4.4%), Zalando (4.2%), Infineon Technologies (3.7%), Heidelberg Materials (3.6%) and Siemens Energy (3.3%). Deutsche Bank and Commerzbank advanced 3.2% and 2.9%, respectively.

Frankfurt's DAX 40 gained ground on Monday, rising nearly 2% to the highest since late February, buoyed by signs that the US and Iran were moving closer to reach an agreement that could reopen the Strait of Hormuz. President Trump said negotiations between the United States and Iran are “proceeding in an orderly and constructive manner,” stressing that both sides “must take their time and get it right as that there can be no mistakes.” This prompted a sharp decline in oil prices, easing concerns about inflation and a global economic slowdown. Most sectors traded higher, led by energy-sensitive industrials and banks. MTU Aero Engines led the way, climbing over 6%, followed by Heidelberg Materials, Continental, Airbus, Siemens and Siemens Energy, with gains between 2%-3%. Commerzbank and Deutsche Bank rose 1.7% and 1.6%, respectively.

Frankfurt's DAX 40 rose further to close about 1.2% firmer at 24,889 on Friday, the highest in over two weeks, driven largely by tech momentum and some hopes for a breakthrough in US-Iran talks. On the data front, German consumer sentiment improved slightly heading into June, defying expectations of a further decline, as did business sentiment, despite remaining near multi-year lows. Infineon Technologies led gains among stocks, surging over 7%. Deutsche Post (+3.9%) also saw strong buying after Deutsche Bank upgraded the stock to “buy” from “hold.”. Puma and Adidas advanced 5.9% and 2.4%, respectively, following strong results from US rival Deckers Outdoor, with World Cup expectations also playing a role. Top losers included Vonovia (-5.3%) and Fresenius Medical Care (-3.9%). For the week, the index advanced roughly 4%.