The DAX Index Closes 0.15% Higher

The DAX Index rose 39 points or 0.15 percent on Monday to close at 25818 points. Leading the gains are Rheinmetall (3.60%), Scout24 (2.47%) and Fresenius (1.81%). Top losers were Bayer (-4.09%), Merck (-2.16%) and Continental (-2.16%).

Frankfurt’s DAX 40 closed about 0.2% up at 25,833 on Monday, setting a new record high and extending last week’s rally. Lower oil prices and expectations of strong quarterly earnings, especially from tech firms, supported investor sentiment. Meanwhile, Germany's cabinet has approved the first draft of the 2027 budget aimed at revitalizing the economy through increased investment and defense spending. Among key movers, Thyssenkrupp climbed over 11% on reports that Canada had selected its marine division to build 12 submarines under a contract valued at more than $100 billion. This also boosted defense names such as Rheinmetall (3.3%), Hensoldt (6.1%) and Renk (4.2%). Other top gainers included Fresenius SE & Co (2%), Deutsche Borse (1.9%), Deutsche Telekom (1-.5%), Airbus (1.4%) and Deutsche Bank (1.3%). On the downside, Bayer (-5.1%), Merck (-2.1%) and Symrise (-1.8%) emerged as the biggest laggards.

Frankfurt’s DAX 40 climbed to a new record of 25,860 points on Monday, extending last week’s rally. The index was buoyed by the prospect of strong quarterly earnings and falling oil prices. Among individual movers, Merck edged higher after HSBC adjusted its stock rating, downgrading the company from "Buy" to "Hold" but raising its price target from €160 to €170. Delivery Hero shares rose nearly 1% following reports that Uber has paused most of its European food delivery expansion plans, announced just months ago, while advancing its acquisition of the German competitor. Continental remained in focus as the automotive supplier plans to distribute €2.5 billion from the sale of ContiTech to shareholders through a special dividend and potential share buybacks. The announcement, made Friday, sent Conti’s share price to its highest level since 2021.