The DAX is on track to surpass its all-time high at the start of the trading week, buoyed by a sharp improvement in market sentiment.
After falling just short of the record level on Friday, investors are now pricing in a sustained de-escalation of the conflict involving Iran, which has removed a key overhang on European equities.
This latest move continues a robust trend for the DAX, which has risen 6% in the first half of 2026.
The rally is being reinforced by a significant drop in oil prices, which has alleviated inflationary concerns and boosted risk appetite across global markets.
The German index had already climbed to a fresh peak on Friday, extending a broader synchronized rally that saw strong performance on Wall Street and clear momentum in European trading sessions.
This latest move continues a robust trend for the DAX, which has risen 6% in the first half of 2026.
The index has benefited from a combination of resilient corporate earnings and a favorable macroeconomic backdrop, with the recent geopolitical thaw adding a fresh catalyst for upside.