FX.co ★ DAX Inches Higher Amid Cautious Mood

In the opening trading session for February, Frankfurt's DAX 40 experienced a modest rise of 0.2%, reaching approximately 24,600 points. This uptick was largely driven by robust performances from Deutsche Telekom and Hannover Re, each gaining around 2%. Despite this slight increase, overall market sentiment remained cautious. This cautiousness was influenced by a significant selloff in precious metals that affected global markets ahead of the European Central Bank's policy meeting scheduled for Thursday. The ECB is anticipated to maintain current interest rates while evaluating the effects of a weakening US dollar and an increase in low-cost Chinese imports on inflation projections. The prices of gold and silver continued their decline from the previous week, leading some investors to liquidate other assets, including stocks, to offset their losses. Additionally, geopolitical tensions were heightened after Iran's supreme leader issued a warning of potential regional conflicts if the US initiated an attack. In parallel, technology stocks underperformed, with Infineon dropping about 2%, reflecting a broader downturn in the sector.