The DAX 40 closed about 0.2% down at 26,006.5 on Monday, halting a three-day winning streak and underperforming its regional peers. Market sentiment was dented by concerns over rising oil prices amid fresh US-Iran hostilities, the prospect of higher interest rates and political uncertainty surrounding Europe. Traders also weighed worse-than-expected German industrial data. On the political front, The AfD’s strong showing in Saxony-Anhalt has revived worries about political instability in Germany, potentially complicating Chancellor Merz’s plans to implement major economic reforms. Meanwhile, the ECB is widely expected to deliver a 25-bps hike to 2.5% on Thursday, with expectations building for another in December. Among individual stocks, Qiagen NV led losses, dropping 2.9%, followed by Munchener Ruck, Hannover Ruck, SAP and Rheinmetall, falling between 1.3% and 2.7%. Rate-sensitive Vonovia fell 2.2%, with Goldman Sachs also downgrading the stock from "Buy" to "Neutral".