Market report: DAX is recovering strongly

At the beginning of the week, signs on the German stock market were pointing to recovery again. The DAX gained 1.7 percent to 26,267 points.

Last Friday, the leading German index fell by 1.9 percent. At times he had lost over 1,000 points from the record he had achieved just the day before with 26,692 points. The losses were triggered by investors expecting stricter AI regulation in the USA following the Democrats' triumph in the US midterm elections.

The oil market proved to be an important source of support. North Sea Brent oil lost 3.8 percent to $94 per barrel (159 liters) by early evening.

As negotiations to end the Iran war continue, hopes have increased that a diplomatic solution will be reached. US President Donald Trump had previously described new large-scale attacks in Iran as "highly unlikely" as long as there was progress in the negotiations. However, US Secretary of State Marco Rubio dampened expectations of an early breakthrough.

Oil prices have fallen significantly since their six-month high at the end of October. Following the election victory of the US Democrats, investors are increasingly expecting that there will be no major escalation of the conflict.

The recovery from the recent price collapse also continued on Wall Street. In early business, the Dow Jones gained 1.5 percent, the Nasdaq technology stocks recovered by two percent.

Thomas Mathews from the analysis firm Capital Economics urged caution: "The correction in the AI ​​sector could continue significantly." Signs that major technology companies are scaling back capital spending could further weigh on technology stocks.

The DAX received support today from fresh economic figures. Exports from German companies rose by 2.0 percent compared to August, as the Federal Statistical Office announced. In total, goods worth 141.1 billion euros were exported.

“Exports are resuming their upward trend,” commented Alexander Krüger, chief economist at Bethmann HAL Bank. "This is good news, especially since competition from China remains high. Foreign trade is likely to support economic growth for the time being, but not drive it forward."

One of the factors determining the direction this week is the accounting season. The reinsurers Hannover Re and Munich Re, the utilities E.ON and RWE as well as Siemens and Henkel will present quarterly figures from the DAX by Thursday. In addition, two German AI beneficiaries, Infineon and Siemens Energy, are also in the spotlight.

What happens next with US monetary policy could become clearer on Tuesday when the latest October inflation data from the US is published. Robert Greil, chief strategist at private bank Merck Finck, expects inflation to reach four percent. “This means that the inflation rate on both sides of the Atlantic would be twice as high as the ECB and Fed are aiming for,” writes Greil.

The US labor market remains robust, inflation is too high and the conflict in the Middle East is unresolved, according to Maximilian Wienke, market analyst at broker etoro. “The Fed could therefore be forced to raise interest rates further.”

The alleged espionage affair at Nvidia is causing unrest in the technology sector. On Sunday, Nvidia boss Jensen Huang confessed to a relationship with a woman who is suspected of spying for China. Nvidia has launched an independent investigation. The shares fell another four percent in early US trading.

The major Italian bank UniCredit wants to take over command of Commerzbank at the beginning of 2027. The financial institution announced that the missing approvals should be available by the end of November. After taking control, UniCredit boss Andrea Orcel wants to apply for an extraordinary general meeting at the Frankfurt financial institution. There would like to send new representatives to the supervisory board. He then wants to implement his “Commerzbank Unlocked” strategy.