The DAX index, which monitors the performance of the 40 largest companies listed on the Frankfurt Stock Exchange, experienced a decline on Monday due to elevated bond yields and apprehensions about a potential hawkish shift in the Federal Reserve's monetary policy. The release of robust U.S. employment data on Friday significantly impacted market sentiment.
Currently, the DAX is trading 0.92% lower at 20,065.11, down from the previous close of 20,252.41. Throughout the day, the trading range varied between a high of 20,223.61 and a low of 20,044.88.
Out of the 40 stocks in the index, only 12 are trading positively. RWE leads with a gain of 1.7%. Beiersdorf, Deutsche Telekom, Porsche, and Mercedes Benz Group have each recorded gains exceeding 1%.
Conversely, Infineon Technologies suffered the most significant loss, declining by 2.9%. Other notable decliners include Heidelberg Materials, MTU Aero Engines, Airbus, Deutsche Bank, adidas, Munchener Ruck, and Rheinmetall, all of which fell by more than 1.5%.
As the U.S. Dollar strengthened, pushing the six-currency Dollar Index to a high of 110.18 earlier in the session, the EUR/USD pair saw a decrease of 0.37%, settling at 1.0198, after fluctuating between 1.0250 and 1.0178. Meanwhile, the EUR/GBP pair increased by 0.32% to 0.8415. The EUR/JPY pair, however, declined 0.66% to 160.47, as market anticipation builds for a potential interest rate hike by the Bank of Japan.
German bond yields rose by 0.92% overnight to 2.5915%. These yields, which closed at 2.568% previously, swung between 2.567% and 2.6105% during the trading day, reaching their highest levels since June 2024. The increase in yields was driven by rising inflation expectations in the European Central Bank survey and the prospect of fewer rate cuts in the U.S.
The material has been provided by InstaForex Company -
www.instaforex.com
