DAX Starts Week in the Green

The DAX 40 rose 0.3% to around 24,740 on Monday, following previous week's losses, underpinned by chipmakers, while traders assessed the latest Middle East developments. The US and Iran agreed to pause mutual attacks after a recent escalation in hostilities and to continue discussions on a memorandum of understanding later this week. Meanwhile, attention turns to the ECB's Sintra Forum, where leading central bankers, including Federal Reserve Chair Kevin Warsh and ECB President Christine Lagarde, are expected to share their views on the global economic outlook and the path of monetary policy. Infineon Technologies led gains among stocks, rising more than 3%. Rheinmetall (1.6%) and Hensold (1.9%) also moved higher. On the flip side, automotive stocks were under renewed pressure. Volkswagen shares continued their recent weakness, falling 2.5% to its lowest level since 2010. BMW shares also dropped 1.9% to their lowest level since 2020.

The DAX Index is up by 102 points or 0.41 percent on Monday. Top gainers are Infineon (2.90%), RWE (2.29%) and Zalando (2.17%). Biggest losses came from BMW (-1.46%), Porsche Automobil (-1.37%) and Volkswagen (-1.16%).

The DAX 40 fell further to close about 1.3% down at 24,671 on Friday, the lowest in two weeks, halting a two-day advance. The selloff in chipmakers intensified, pressuring the index, amid global uncertainty around tech stocks and mounting concerns over the rising cost of AI infrastructure. Infineon Technologies sank nearly 5%. Other stocks with exposure to the AI-driven data centers were affected, including Siemens Energy (-5.6%) and Hochtief.(-2.4%). Zalando, on the other hand, plunged 6.3% after the German financial regulator opened an investigation into the online fashion retailer's 2025 report due to suspicions of violations of accounting rules. Volkswagen fell 3.7% after reports the group is considering deeper workforce cuts of up to 100,000 jobs and potential factory closures to restore competitiveness and improve profitability. On the upside, SAP (2.2%) and Beiersdorf (2.1%) were the biggest gainers. For the week, the index recorded a decline of about 1.3%.