On Monday, the German stock market continued the upward trend that started before the weekend.

The Dax closed with a sharp increase of 2.4 percent to 13,402 points and thus at the highest level for around three weeks.

From the afternoon, Wall Street, which was strong again, was a stirrup holder for further price gains.

The M-Dax of medium-sized stocks ended trading 1.89 percent higher at 26,186.80 points.

Despite all economic and political risks, investors took heart, according to the market, after the leading German index closed above the psychologically important mark of 13,000 points on Friday after a long struggle.

Even the prospect of an increasingly restrictive monetary policy leaves investors cold at the moment.

Behavior positive mood

According to Konstantin Oldenburger of CMC Markets, the Ukrainian army's recent successes in the war against Russia also provided some tailwind.

However, he considered hopes for a recovery from the energy crisis to be premature.

Stock market observer Andreas Lipkow spoke of a cautiously positive mood on the market: "Investors are trying to position themselves for a potential economic recovery for a period of six to nine months of trading, but without having to accept too many risks." Accordingly, investors started the week ahead mainly on cyclical stocks, such as auto stocks.

In line with the strong European industry, Daimler Truck and Mercedes-Benz led the Dax with price increases of more than five percent each.

The economically sensitive retail stocks were also in demand, in Germany, for example, Zalando rose by around five percent, for competitor About You it went up by 5.7 percent.

The Telekom papers, which are considered defensive, lost almost one percent at the end of the Dax.

With the strong market, Hellofresh were able to turn their initially high losses into an increase of around 2.6 percent by the end of trading.

In the morning, the shares of the cook box mailer had lost almost 7 percent at times.

The trigger was the health warning from a US agency for certain minced meat packages in the group's meal sets in July.

After all, there have been no such complaints so far, commented a dealer.

The badly hit papers from TAG Immobilien made it onto the winners' podium in the M-Dax with a premium of 6.3 percent.

Just last week they had fallen to a low since the end of 2014, and now they benefited from a buy recommendation from the analysts at Kempen.

The Eurozone leading index EuroStoxx 50 also started the new trading week with strong gains and rose by 2.14 percent to 3646.51 points.

The leading stock exchanges in Paris and London grew at a similar rate.

In New York, the Dow Jones Industrial curbed its initial gains and was still about 0.4 percent higher at the European market close.

The euro cost almost 1.0133 US dollars in evening trade after its high for almost four weeks.

During the course of the day, the European common currency had temporarily climbed to its highest level since mid-August.

The European Central Bank (ECB) had set the reference rate at $1.0155 (Friday: $1.0049) in the afternoon.

On the bond market, the current yield fell from 1.61 percent on Friday to 1.58 percent.

The Rex pension index rose by 0.21 percent to 130.98 points.

The Bund future rose by 0.58 percent to 144.37 points.