
The German DAX index surged to a record high on Monday, surpassing its previous peak of 25,900.10 points set in early July. By the opening of trading, the index climbed to 25,912.59 points, a gain of 1.11 percent, and later reached as high as 25,974.92 points, up 1.3 percent .
The rally followed U.S. President Donald Trump’s announcement over the weekend that he had canceled a planned large-scale attack on Iran and would pursue new negotiations with Tehran. Trump told reporters aboard Air Force One on Sunday that the canceled strike would have been “the biggest attack since World War II” and that he had no intention of killing people. He added that talks would now be explored .
Oil prices plummeted in response, with Brent crude for October delivery falling as much as 7.3 percent to $81.55 per barrel. The drop eased concerns about rising inflation and interest rates, which had weighed on markets in recent weeks .
Technology stocks led gains in Germany, mirroring a rebound in the U.S. and Asia. Mislav Matejka, an equity strategist at JPMorgan, noted that corporate earnings reports on both sides of the Atlantic had exceeded expectations, with all U.S. sectors and nearly all European sectors showing year-over-year growth in earnings per share. Strong quarterly results from U.S. tech giants Microsoft and Amazon contributed to the momentum .
The DAX had slumped to around 24,650 points in mid-July after renewed U.S. strikes on Iran pushed Brent crude briefly above $100 per barrel. Since the start of the year, the index has gained roughly 5 percent .
Other European indices also rose, with the M-Dax of mid-cap stocks up 1.4 percent to 32,413 points and the Euro Stoxx 50 gaining 0.7 percent. Deutsche Telekom shares advanced 2 percent, while Stabilus, an industrial and automotive supplier, saw its stock rise about 2.5 percent after releasing final quarterly figures .
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