Frankfurt’s DAX 40 inched up to around 24,900 on Monday, attempting a rebound after two straight weeks of losses triggered by a sharp correction in AI-linked stocks and rising geopolitical tensions between the US and Iran. Brent crude climbed to its highest level in more than a month after the two countries exchanged retaliatory strikes, stoking renewed inflation concerns.
Investors are now turning their attention to Thursday’s European Central Bank policy meeting, where interest rates are widely expected to be left unchanged following June’s hike. Even so, markets are still pricing in two additional ECB rate increases by early 2027, with the first potentially arriving as soon as September.
On the corporate side, Germany’s automotive sector was in the spotlight after Tesla announced plans to rapidly expand production at its Grünheide factory near Berlin. Meanwhile, Salzgitter extended Friday’s rally after the steelmaker raised its full-year earnings guidance.
