Market report: DAX defies high oil prices

The DAX remains on a recovery path. At the beginning of the week, the leading German index rose 0.8 percent to 25,277 points. On Friday, after a turbulent trading week, it had already risen around 1.1 percent to 25,087 points.

The US stock exchanges, on the other hand, initially showed mixed trends. While the Dow Jones was able to gain slightly in early business, technology stocks on the Nasdaq fell slightly.

Because of the “Columbus Day” holiday, the US bond market will be closed at the beginning of the week, which means that an important source of stimulus will be lost. Recently, observers have paid particular attention to the worrying rise in yields. There was no pressure from the German bond market either. The yield on ten-year federal bonds remained below 3.48 percent.

The prices were supported by the ongoing negotiations between Washington and Tehran as well as the EU's recent trade agreement with China on export restrictions for hybrid cars. Auto stocks also benefited from this.

The announcement by Chancellor Friedrich Merz that the electricity tax for everyone would be reduced to the European minimum also provided positive impulses.

On the oil market, the relief effect from impending Russian diesel deliveries to the USA evaporated. Brent North Sea oil climbed to almost $107 a barrel by early evening.

According to his own statements, US President Donald Trump agreed on extensive diesel deliveries with Russian President Vladimir Putin last Friday, which sparked strong criticism in Europe and also from US politicians.

With the start of the US reporting season, another stimulus comes into play from Tuesday. Starting tomorrow, as always, the US banks will start.

Investors will closely examine the financial institutions' reports and, above all, their outlook, as indications of changes in the market environment are usually reflected in the banks' books at an early stage. "Banks are a good indicator of how loan demand is developing and what the general economic situation is," said Kim Forrest, chief investor at Bokeh Capital Partners.

“This also gives us insight into what the Federal Reserve (Fed) might do,” said Forrest. And on top of that, inflation data in the United States for September could potentially impact the Federal Reserve's interest rate plans.

Volkswagen's sales decline accelerated further in the third quarter. Around 1.89 million vehicles from all Group brands were delivered to customers worldwide from July to September - 14.3 percent less than a year earlier, as the company announced in Wolfsburg this morning. At 38.5 percent, the decline was particularly high in China. VW sold a good six million cars from January to September. That is 9.0 percent or around 600,000 fewer than in the same period last year.

The VW commercial vehicle holding Traton, on the other hand, noticeably increased its sales in the third quarter. Sales rose by ten percent to 78,900 vehicles, as the MDAX group announced today. The main reason was a better performance in the US market, which had collapsed significantly a year ago due to President Donald Trump's tariff caper.

The price gains in defense stocks were striking today. Analysts at Morgan Stanley were more optimistic about the industry and believe a rally in the sector at the end of the year is quite possible.