FRANKFURT (dpa-AFX) - The DAX's recent downward trend is expected to intensify on Monday, fueled by weak global cues and renewed tensions in the Middle East. Approximately two hours before the Xetra open, broker IG signaled a 1.2 percent decline for the German benchmark index, positioning it at 24,462 points. This move is likely to push the index well below its 21-day moving average, which currently stands at 24,700 points.

Profit-taking on Wall Street accelerated on Friday evening following the US labor market report, a sentiment that carried over into Asian trading at the start of the week. Technology-heavy markets in Tokyo, Taiwan, and South Korea, which had recently surged on AI-driven optimism, were particularly hard hit. 'When the hottest playground suddenly turns into a frantic exit, traders take notice,' explained Stephen Innes, Managing Partner at SPI Asset Management.

Adding to the pressure is the latest escalation in the conflict between Iran and Israel. Both nations recently reported reciprocal missile strikes, despite media reports that US President Donald Trump urged Israeli Prime Minister Benjamin Netanyahu to refrain from retaliating against new Iranian attacks. The Israeli Air Force has targeted sites in western and central Iran, causing oil prices to rise significantly as the trading week begins./tih/zb