DAX set for a weaker start
The DAX is expected to start the week slightly weaker, opening below the 24,800-point mark. The weekend offered little in the way of positive catalysts to lift investor sentiment, with market participants remaining cautious.
Ongoing military tensions between the United States and Iran continue to drive oil prices higher, with Brent crude now trading above $90 per barrel.
Asian technology stocks diverge
Asian markets presented a mixed picture. Chinese equities benefited from renewed enthusiasm surrounding artificial intelligence, lifting semiconductor and technology stocks.
In contrast, chipmakers in Japan and South Korea came under pressure as investors increasingly view China's technology sector as a growing competitive threat. US technology stocks may also struggle to gain traction at the start of the week.
AI growth meets competitive pressure
The sector is currently caught between two opposing forces: strong long-term growth prospects on the one hand and intensifying competitive pressure on the other.
The enormous potential of AI continues to attract investment, but it also forces companies to defend their market positions more aggressively. Investors are increasingly trying to distinguish the future winners from those that may struggle to keep pace.
