DAX Fails to Hold Gains

The DAX Index decreased -216 points or 0.91 percent on Wednesday to close at 23515 points. The decline was led by SAP (-2.81%), Deutsche Telekom (-2.69%) and Symrise (-2.43%). On the upside, the strongest performers were HeidelbergCement (2.47%), Deutsche Post (1.88%) and Commerzbank (1.76%).

Frankfurt's DAX 40 erased some early gains to trade 0.5% lower around 23,600 on Wednesday afternoon, in line with most European peers. Market sentiment weakened as oil prices rebounded, driven by reports of US and Israeli missile strikes on Iran’s South Pars gas field and the associated Assaluyeh refining complex. At the same time, investors turned more cautious ahead of policy announcements from the Federal Reserve later in the day and the ECB tomorrow. Telecom, utilities and pharma stocks were the hardest hit, while banks and industrials advanced the most. In equities, Bayer AG, Deutsche Telekom, Fresenius Medical Care, E.ON, and Symrise each recorded losses of more than 2%. On the flip side, Commerzbank, Heidelberg Materials and Siemens Energy were the top performers, rising between 1.9% and 3.9%.

Frankfurt's DAX 40 rose about 0.5% to trade above 23,800 on Wednesday, the highest in over a week, marking the third consecutive session of gains. Oil prices fell, lifting sentiment, after Iraq reached an agreement to resume exports via Turkey, avoiding the Strait of Hormuz. However, the situation in the Middle East remains tense following the killing of Tehran's security chief. Attention was also on upcoming policy announcements by major central banks, including the US Federal Reserve later in the day. Among top performers, industrials saw strong gains, with Heidelberg Materials climbing 3.5% after Morgan Stanley upgraded it from "underweight" to "overweight." Banks and technology stocks also advanced firmly. On the downside, Deutsche Telekom (-1.7%) led the laggards, followed by Fresenius Medical Care (-1.3%), RWE (-1.1%), and Zalando (-1%).