DAX Index Rebounds Amid US-Iran De-escalation Signals; German Trade Surplus Narrows

11:47 AM EST, 11/09/2026 (MT Newswires) -- The German blue-chip DAX index closed 1.72% higher on Monday as market sentiment was lifted by falling oil prices after US President Donald Trump downplayed the prospect of further strikes on Iran. While Trump signaled a halt to further military action against Iran as peace negotiations continue, regional instability persisted over the weekend after fresh incidents in the Strait of Hormuz and Houthi-claimed shrapnel damage to Saudi Aramco offices. In the euro area, eurozone finance ministers are set to review candidates Pablo Hernández de Cos and Klaas Knot to succeed Christine Lagarde as the European Central Bank President, ahead of a final decision by European heads of state, who could still select a different candidate. On the economic front, Germany's calendar and seasonally adjusted trade surplus came in at 15.6 billion euros in September, below the revised 17.8 billion euros a month ago and the expected 19.2 billion euros. According to the Federal Statistical Office, exports edged up 2% month over month, against the revised 0.4% dip earlier and the expected 0.5% gain. Monthly imports rose 4.2%, compared with the revised 0.6% increase previously and the market forecast of 0.5% growth. Meanwhile, Sentix survey results showed that overall investor sentiment for the German economy improved to -3.3 points in November from the previous month's -3.6 points. Conversely, overall sentiment in the euro area declined to 2.4 points from 2.7 points a month ago, compared with the market forecast of 2.1 points. "The German economy is thus showing initial signs of stabilization, without having managed to make a decisive breakthrough as yet. In the absence of reform impetus, coupled with high business costs and persistent economic policy uncertainties, the recovery remains on fragile ground," the report said. In upcoming economic data news, the final October inflation figure for Germany is due Wednesday, while domestic current account and wholesale price results are expected on Thursday and Friday, respectively. Zooming out, the euro area's third-quarter gross domestic product and employment figures, alongside the September trade balance reading, are scheduled for a Friday release. In the US, October inflation and producer price reports are also due this week. On the corporate side, AlphaValue/Baader Europe noted that Hannover Re (HNR1.F) posted a "solid" third-quarter beat, though the Solvency II ratio of 242% came in lower than the previous and expected 256%. Group net income came in at 694.7 million euros, up from 650.8 million euros previously, while reinsurance revenue climbed to 6.60 billion euros from 6.37 billion euros. "Hannover Re reported strong 3Q26 results, with net profit 9% above consensus. As with other reinsurers, however, attention is likely to stay on the 2027 outlook for Property & Casualty (P&C), a market that is currently softening, rather than on the solid short-term performance. With the reinsurance sector having rerated in recent months, we remain cautious in the near term. In addition, the drivers of the Solvency II decline remain a question mark," the research firm wrote. Hannover Re lost 1.09% at the end of the trading day.