DAX edges back towards 25,000
Supported by positive leads from both Asian markets and Wall Street, the DAX is once again edging towards the 25,000-point mark.
While reports suggest that the United States and Iran have resumed indirect negotiations through international mediators, military attacks in and around the Strait of Hormuz continue, leaving one of the world's most important shipping routes at the centre of geopolitical concerns.
Oil prices continue to cap upside
Brent crude remains elevated at around $90 per barrel, reflecting the significant geopolitical risk premium still embedded in energy markets.
Persistently high oil prices are likely to limit the DAX's ability to build sustained upward momentum, as investors remain concerned about their potential impact on inflation and economic growth.
Earnings and the ECB move into focus
Market participants are also looking ahead to a busy week for corporate earnings, with results due from Tesla, Alphabet and Intel.
Attention will additionally turn to the European Central Bank's policy meeting on Thursday. While interest rates are widely expected to remain unchanged, investors will closely scrutinise the ECB's assessment of the inflation outlook and any guidance on the future policy path.
ZEW and US data shape today's agenda
On today's macroeconomic agenda, markets will focus on Germany's ZEW Economic Sentiment Index and the ADP employment report from the United States. Corporate earnings from 3M and General Motors will also be closely watched.
