The DAX Index Closes 2.43% Lower

Frankfurt's DAX 40 closed about 2.6% lower at 24,672 on Monday, the lowest since early February and underperforming its European peers. Investors continued to assess the economic fallout from the Middle East conflict, particularly the risk of disruptions to energy supply chains and the potential impact on global economic stability. This could translate into a new inflationary surge, undermining forecasts so far of potential rate cuts by the Federal Reserve and the European Central Bank. Among the hardest-hit companies were travel and tourism stocks, pressured by flight cancellations to the Middle East and soaring oil prices. Lufthansa fell 4.6% and TUI dropped nearly 9%. Chemical firms such as BASF and Brenntag declined 2.6% and 2.5%, respectively, partly due to higher natural gas costs. The auto sector also faced heavy selling, led by BMW (-4.5%), Volkswagen (-4%), and Mercedes-Benz Group (-3.8%). Retailers Zalando (-4.4%) and Adidas (-4%) also struggled.

The DAX Index fell -613 points or 2.43 percent on Monday to close at 24671 points. Leading the losses are BMW (-4.90%), Volkswagen (-4.84%) and Zalando (-4.83%).

Frankfurt's DAX 40 tumbled more than 2% on Monday, trading at over three-week lows of 24,720, as investors assessed the economic fallout from the Middle East conflict. Over the weekend, a major escalation in the Middle East unfolded after the United States and Israel carried out coordinated strikes on Iran that killed Iran’s Supreme Leader Ayatollah Ali Khamenei and other top officials, prompting swift Iranian retaliation and jeopardizing energy supply chains and global economic stability. Travel and leisure stocks, including airlines, declined the most, with Deutsche Lufthansa slipping over 5%. Banking stocks and insurers also faced heavy pressure. Deutsche Bank dropped 3.5%, Commerzbank fell 2.7% and Allianz lost 2.6%. Chemical companies such as BASF and Brenntag lost over 2% each. Meanwhile, defense names such as Hensoldt (5%), Renk (3.6%) and Rheinmetall (3.4%) advanced on rising expectations of higher US defense spending.