DAX edges higher as Starmer resignation and Middle East talks weigh on sentiment

European equities opened cautiously on Monday, with the German benchmark gaining 0.6% as investors digested the political shift in London and early signals from Swiss-led peace negotiations.

By Handelsavisen Newsroom · Automated 2026-06-23 04:31 UTC · 1 min read

The DAX rose 0.6% at the start of the trading week, reflecting a cautious tone among European investors.

The modest gain came as markets processed two significant geopolitical developments: the resignation of UK Prime Minister Keir Starmer and preliminary outcomes from Middle East peace talks held in Switzerland.

The political change in London introduces uncertainty regarding the UK’s economic policy direction and its relationship with the EU, a factor that typically prompts risk-off behavior in European equities.

Meanwhile, the diplomatic progress in Switzerland offers a potential de-escalation pathway in the Middle East, which could ease supply chain concerns and energy price volatility if sustained.

Traders are likely to monitor the immediate aftermath of the UK leadership transition for clarity on policy continuity.

Any signs of instability or abrupt policy shifts could weigh further on the pound and UK-listed equities, potentially dragging down broader European sentiment.