Frankfurt’s DAX 40 rose 0.2% to around 24,600 points in the first trading session of February, supported by strong gains in Deutsche Telekom and Hannover Re, both up about 2%. Despite the modest advance, sentiment remained cautious as a sharp selloff in precious metals rippled across global markets ahead of the European Central Bank’s policy meeting on Thursday. The ECB is widely expected to keep interest rates unchanged while assessing the impact of a weaker US dollar and a surge in low-priced Chinese imports on the inflation outlook. Gold and silver extended last week’s declines, prompting some investors to sell other assets, including equities, to cover losses. Geopolitical risks also stayed elevated after Iran’s supreme leader warned of regional escalation in the event of a US attack. Meanwhile, technology stocks lagged, with Infineon sliding about 2% to the bottom of the index, tracking broader weakness in the sector.
