DAX index started week with decrease

On Monday, Germany's DAX index showed downward dynamics at the close of trading in Frankfurt, in line with the performance of other European indices.

The largest portion of the index decline was driven by stocks of Munchener Ruck (-3.1%), Sartorius (-2.5%) and Brenntag (-2.3%). Shares of German defense contractors, such as Renk Group, Hensoldt, and Rheinmetall, also saw significant declines, falling 5.3%, 2.5% and 1%, respectively.

Meanwhile, gains were seen in the telecommunications and utilities sectors. RWE AG (+1.70%) and Deutsche Telekom (+1.61%) were the best performers.

The number of falling stocks on the Frankfurt Stock Exchange outnumbered the number of rising ones by 378 to 233. The DAX volatility index fell 10.01% to 23.12.

According to TradingView, traders' behavior was mainly influenced by geopolitical events as well as fresh Germany's PMI data. Thus, according to the latest statistics, the country’s private sector returned to growth in June. As for the situation in the global arena, some market participants quoted by TradingView believe that the possibility of further escalation of tensions in the Middle East is limited.