FRANKFURT (dpa-AFX) - The Dax reversed early losses on Monday to post significant gains. At the start of trading, the downward trend that hit the German benchmark index last Friday initially persisted. After starting the week down as much as 0.6 percent and slipping below the 24,000-point threshold, speculation regarding new negotiation proposals in the Iran conflict propelled the Dax up by as much as two percent. It ultimately closed 1.49 percent higher at 24,307.92 points. The MDax edged up 0.24 percent to 31,440.09 points.
'News of a five-point plan submitted by Iran to end the conflict triggered a sharp turnaround for the Dax today,' noted market observer Andreas Lipkow of broker CMC Markets. Even before this, some investors had used levels below 24,000 on the Dax for 'bargain hunting.' Despite high oil prices, investors are betting that the situation in the Middle East will soon stabilize. According to Iranian media reports, the U.S. is purportedly prepared to temporarily ease oil sanctions against Iran.
Lipkow highlighted specific Dax heavyweights providing support, including chipmaker Infineon, which rose 1.8 percent. Investors continued to play the AI theme through the stock, as they did with software giant SAP and energy technology group Siemens Energy. In the MDax and SDax, Nordex and SMA Solar, two other companies in the energy technology sector, were also notably strong./niw/he
