Frankfurt’s DAX 40 inched upward to approximately 24,900 on Monday, striving to rebound following two successive weeks of declines prompted by a significant correction in AI-related equities and rising tensions between the US and Iran. Brent crude reached its peak in over a month following a sequence of retaliatory strikes between the two nations, intensifying worries regarding inflation.

Investors are anticipating Thursday’s European Central Bank policy meeting, where it is broadly expected that rates will remain unchanged following the hike in June. However, markets continue to anticipate two additional ECB rate increases by early 2027, with the first potentially occurring as soon as September.

On the corporate front, attention is drawn to the automotive sector following Tesla’s announcement regarding a swift expansion of production at its Grünheide facility near Berlin. Meanwhile, Salzgitter continued to build on Friday’s gains after the steel manufacturer revised its full-year earnings forecast upward.