DAX set for a positive start as investors remain cautious despite easing tensions

The DAX is expected to start the new trading week with modest gains. A positive tone is being supported by firmer markets in Asia as well as constructive talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng ahead of the meeting between Donald Trump and Xi Jinping. Trade relations between the two countries, artificial intelligence and access to critical raw materials are at the centre of the discussions. For now, the constructive atmosphere surrounding the talks is easing investor concerns about renewed political tensions between the world’s two largest economies.

Further support is coming from the continued decline in energy prices. Brent crude is once again approaching the psychologically important $100 a barrel mark from above. However, there is still little sign of broad-based buying across the equity market. Investor interest remains heavily concentrated on semiconductor and AI stocks, while the broader market is only edging higher. Concerns remain too great that another surge in inflation could force central banks to maintain restrictive monetary policy for longer. At the same time, the economic backdrop remains fragile in many countries.

The new trading week is therefore likely to begin with investors testing key resistance and support levels rather than establishing a new trend. Sentiment has improved, but the willingness to make larger commitments has not yet returned. For a sustainable move higher, the market needs more than easing political tensions and falling oil prices; it needs renewed confidence in the economic outlook. From a technical perspective, the DAX is expected to trade within a range of 25,350 to 25,600 points at the start of the week.