DAX moves back above 25,000
Renewed hopes for a ceasefire in the Middle East have lifted equity markets at the start of the new trading week, pushing the DAX comfortably back above the 25,000-point mark.
Lower oil prices lift risk appetite
Sentiment had already improved across Asian markets overnight as the absence of further US military strikes against Iran over the weekend encouraged investors to return to risk assets.
The primary catalyst was a sharp decline in oil prices, with Brent crude falling by more than 5%. The retreat in energy prices has eased concerns over inflation and, in turn, reduced pressure on central banks to tighten monetary policy further.
Semiconductors lead gains in Asia
Technology and semiconductor stocks once again led gains in both China and Japan. The spectacular stock market debut of Chinese memory chipmaker CXMT, whose shares surged by more than 500% on their first day of trading, highlighted the continued enthusiasm surrounding the semiconductor sector.
Ceasefire durability remains key
For the DAX, lower energy prices are expected to provide the key catalyst for today's advance above the psychologically important 25,000-point threshold.
Whether this move develops into a sustained breakout will largely depend on the durability of the latest ceasefire and whether diplomatic negotiations in the Middle East produce tangible progress.
Precious metals also move higher
Precious metals have also responded positively to the latest geopolitical developments, with both gold and silver posting solid gains at the start of the week as investors continue to balance improving risk sentiment with ongoing demand for safe-haven assets.
