Following an initial rise, Germany’s equity benchmark DAX experienced a decline on Monday morning, influenced by a downturn in defense stocks as indications of advancement in Ukraine peace negotiations emerged. In the absence of economic data for the day and a lack of significant developments on the corporate front, market sentiment continued to exhibit a subdued tone.

Additionally, with the market scheduled to close early on Tuesday and remain closed on Thursday and Friday for the New Year holidays, traders seem hesitant to engage in significant transactions. U.S. President Donald Trump remarked that a Ukraine peace deal is “getting a lot closer,” despite unresolved territorial issues.

• Rheinmetall experienced a decline of 2.3%.
• Siemens Energy saw a decrease of 1.4%.
• whereas MTU Aero Engines, Infineon Technologies, and Scout24 recorded losses ranging from 0.8% to 1.1%.
• Among the gainers, BASF experienced an increase of nearly 2%.
• Mercedes-Benz, Adidas, Continental, and Brenntag experienced increases ranging from 1.3% to 1.7%.
• BMW, Beiersdorf, Zalando, Merck, Heidelberg Materials, Vonovia, Deutsche Boerse, Siemens Healthineers, and Volkswagen experienced increases ranging from 0.4% to 0.8%.

The DAX experienced a decline of 63.74 points, reflecting a decrease of 0.26%, settling at 24,276.32 recently. The index had risen to 24,436.43 earlier in the session. Meanwhile, the yield on Germany’s 10-year Bund decreased to 2.84% this morning, staying slightly below the nine-month highs observed last week.