FRANKFURT (dpa-AFX) - On the first day of a potentially pivotal week for the markets, investors remained cautious. Germany's leading index, the DAX, closed Monday with a modest gain of 0.13 percent at 24,933.08 points. This continued the recent trend of the market barometer lingering just below the round mark of 25,000 points. The MDAX rose by 0.25 percent to 31,826.25 points.

A key event for international financial markets is scheduled for Wednesday, when the US Federal Reserve will announce its interest rate decision. In addition, quarterly reports from US tech giants such as Microsoft, Texas Instruments, Apple, and Tesla are expected. In Germany, DAX-listed companies Deutsche Bank and SAP will present their business results and forecasts.

Sentiment in the German economy also failed to spark share purchases on the markets. The Ifo Business Climate Index remained stable in January, while economists had on average expected a rise. "Hopes for a boom from the multi-billion fiscal package are once again being overshadowed by concerns about poor business conditions due to sluggish reforms," wrote analyst Christine Romar of brokerage CMC Markets.

From a sector perspective, banks were in demand. Shares in Deutsche Bank gained 0.8 percent, while Commerzbank shares rose by 1.4 percent. "The banking sector is likely to continue to see strong growth in equities, fixed income, commodities, and currencies," Citigroup wrote in its earnings outlook.

Puma shares rebounded with a jump of nearly 17 percent, recouping heavy losses from Friday thanks to ongoing takeover speculation. A report that talks between French Puma major shareholder Pinault and China's Anta Sports over a sale of the stake had ended had caused Puma's share price to plummet on Friday.

Shares in Friedrich Vorwerk soared by 7.3 percent, making it the top performer in the SDAX. The supplier for natural gas, electricity, and hydrogen applications exceeded its targets for the past year. The positive business development also benefited investment company MBB, which holds just over half of the company's share capital. MBB shares gained 5.5 percent.

Commercial real estate specialist Aroundtown announced it will immediately begin buying back its own shares for up to 250 million euros. Aroundtown shares rose by 5.8 percent.

The market also welcomed preliminary business figures from Gea Group. The plant manufacturer was somewhat more profitable than expected in 2025. The share price climbed by 3.4 percent.

The Eurozone's leading index, the EuroStoxx 50, closed Monday up 0.16 percent at 5,957.80 points. Outside the eurozone, London's FTSE 100 and Switzerland's SMI were virtually unchanged. On Wall Street, the Dow Jones Industrial was slightly higher at the close of European trading./bek/stk

--- By Benjamin Krieger, dpa-AFX