German stocks saw a rebound on Monday following a significant drop in the previous session, which was fueled by uncertainties surrounding the EU's political scene.
The euro remained near its lowest level in over a month due to political turmoil in France.
Treasury yields edged higher as investors speculated on the timeline for potential interest-rate cuts. According to the European Central Bank's chief economist, Philip Lane, the ECB remains optimistic that inflation will return to its 2 percent target by the second half of next year. However, Lane emphasized the importance of carefully interpreting incoming data to distinguish between transient fluctuations and meaningful trends, as reported by Reuters.
The benchmark DAX index rose by 80 points, or 0.5%, to 18,083, recovering from a 1.4% decline on Friday.
