The DAX Index Opens 1.12% Lower

The DAX 40 cut early losses to trade slightly down around 24,670 on Monday, the lowest since May 21, as traders closely monitored developments in the Middle East. Iran announced the end of its military operation against Israel after a day of retaliatory strikes between the two countries, while warning it could resume operations if Israel continues actions in Lebanon. This helped curb the increase in oil prices. Chemical stocks came under pressure, with BASF falling 3.6% and Brenntag losing 2.3%, after Goldman Sachs downgraded several companies in the sector amid concerns over a renewed downturn in Europe's chemical industry. Interest rate-sensitive Vonovia also declined nearly 2%. On the upside, Infineon surged 2.1% to lead the index, rebounding after recent profit-taking.

The DAX 40 fell about 1% to near 24,500 on Monday, the lowest since May 19, as traders weighed the renewed escalation of the conflict between Iran and Israel and a fresh spike in oil prices. Both countries exchanged missile strikes over the weekend, despite media reports that US President Donald Trump urged Israeli Prime Minister Benjamin Netanyahu to refrain from retaliating against the latest Iranian attacks. Most sectors recorded losses. Travel stocks such as TUI and Lufthansa dropped 2.4% and 1.4%, respectively. Other top decliners included Vonovia, Zalando, Airbus, Heidelberg Materials, MTU Aero Engines, Continental and Siemens, with losses of over 2% each. On the upside, Infineon Technologies reversed early losses to lead the index, rising 1.7%. Porsche Automobil and RWE also posted modest gains, rising 0.8% and 0.6%, respectively.

The DAX Index is falling 277 points. Losses were driven by Airbus (-2.36%), Vonovia (-1.91%) and Adidas (-1.86%).