The leading German index advanced by 0.5 percent to 14,755 points. However, analysts believe that the gains in the Dax are likely to be limited. The geopolitical environment offers little reason for optimism, wrote analysts at Helaba in a commentary. Concerns about an escalation of the Middle East conflict are increasing again. Israel's military had recently stepped up its ground operation in the Gaza Strip, but did not speak of the start of the expected ground offensive.

Siemens Energy shares were among the biggest winners on the DAX, climbing 15 percent after their significant losses last week. Talks between the German government, the energy technology group and its major shareholder Siemens on the assumption of guarantees for major orders continued on Monday. The company, which is struggling with billions in losses, had confirmed talks with the federal government on Thursday about state guarantees.

(Report by Daniela Pegna, edited by Hans Seidenstücker. If you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)