27.07.202607:53:14UTC+00DAX Extends Winning Streak on Improved Risk Appetite

Frankfurt’s DAX 40 climbed more than 1% to 25,440 on Monday, extending last week’s 1.1% advance, as easing US–Iran tensions and declining oil and bond yields improved risk appetite ahead of a busy week of central bank meetings and major technology earnings. Brent crude pulled back from two-month highs, tempering inflation concerns and leading investors to scale back expectations for additional policy tightening.

Travel stocks led the market higher on hopes that lower fuel costs will bolster profit margins and consumer spending, with Lufthansa rising more than 3%. Chipmaker Infineon added 0.9%, supported in part by the strong market debut of Chinese semiconductor manufacturer CXMT. By contrast, construction group Hochtief slipped 2.3% ahead of its quarterly earnings release after the close.

Investors now look to policy decisions from the US Federal Reserve and the Bank of England later this week, as well as a new set of European inflation figures, for further guidance on the interest-rate outlook.