However, trade was very quiet; Markets in Britain and the United States were closed for holidays. Added to the absence of international investors was the lack of impulses from New York.
The DAX closed with a gain of 0.44 percent at 18,774.71 points. The MDax of medium-sized German shares gained 0.58 percent to 27,281.48 points.
“At the moment, the economic trees are not yet growing towards the sky”
Surprisingly, the mood in the German economy did not improve in May after three consecutive increases. “Therefore, the economic trees are not yet growing to the sky, at least for the moment,” said chief economist Christian Lips of NordLB. However, he does not want to overestimate any value, because the signs of a gradual stabilization of the economy remain clearly in the majority. This opinion also seems to prevail in the financial markets, he said, referring to the Dax.
According to Lips, the bleak business situation calls for exuberant optimism. On the other hand, as far as the economy is concerned, there is no serious obstacle to the European Central Bank's first interest rate cut in June. Uncertainty over the future direction of central banks' monetary policy had recently slowed the Dax's record rally after the leading index hit a high of 18,892 points in mid-May.
Car values became a support for the Dax
The company's reports were scarce. It was noted that some stocks had opposite reactions to the recent evolution of their prices. This is how auto stocks became a support for the Dax. Shares of Porsche AG, which rose 2.8 percent, rose to the top of the index and thus recovered from the lowest level recently reached since mid-March. Volkswagen shares rose 1.7 percent. Premium automakers Mercedes-Benz and BMW also ended up trading higher.
Wacker Chemie, a stock that has seen tough times so far in 2024, was in demand on the MDax. Only on Friday did it reach its lowest level since February. Despite the 4.3 percent recovery on Monday, the specialty chemicals company's annual balance sheet remains in the red with a loss of more than seven percent.
Shares of web hosting provider Ionos fell 5.5 percent
In the case of Ionos, from the SDax small cap index, things went in the opposite direction due to profit taking; In this case, the investment bank Morgan Stanley took the breath away from the price rise. Shares of the web hosting provider fell 5.5 percent after analyst George Webb abandoned a positive recommendation on it. He now considers that the opportunities and risks are quite balanced.
Trading stopped in London and the US.
The eurozone's leading index, EuroStoxx 50, rose 0.47 percent to 5,059.20 points. The Cac 40 saw similarly high price increases in Paris. There were no transactions in London due to the spring bank holiday and transactions in New York were suspended on Memorial Day.
Relative calm reigned in the currency market. The euro was trading at $1.0859 at midday. The European Central Bank (ECB) set the reference rate on Friday at $1.0840.
In the bond market, the current yield rose from 2.64 percent on Friday to 2.66 percent. The Rex bond index fell 0.06 percent to 123.74 points. The Bund future rose 0.18 percent to 130.34 points.