DAX Finishes Marginally Down

Frankfurt's DAX 40 trimmed some early losses to close marginally down at 22,640 on Tuesday, reflecting persistent uncertainty over the Iran war amid conflicting signals on a potential end of the conflict. Meanwhile, flash March PMI surveys showed that the recent surge in energy prices is already affecting global economies, slowing business activity and production while adding upward pressure on inflation. Germany's private sector growth slowed to a three-month low, with the services sector losing further momentum. SAP led losses in equities, falling roughly 4% following JPMorgan’s downgrade from ‘Overweight’ to ‘Neutral. Analyst Toby Ogg argued that the outlook for expected growth acceleration and margin expansion had changed. Bayer fell nearly 2% on news of potential stake sale from shareholder Inclusive Capital Partners. On the upside, chemical firm Brenntag jumped 7.6% after Deutsche Bank raised its rating from ‘Hold’ to ‘Buy' and lifted its price target from €46 to €57.

The DAX Index decreased -52 points or 0.23 percent on Tuesday to close at 22602 points. The decline was led by SAP (-3.95%), Scout24 (-2.64%) and Bayer (-1.33%). On the upside, the strongest performers were Brenntag (7.22%), BASF (4.09%) and Deutsche Telekom (2.93%).

Frankfurt's DAX 40 fell 0.4% to near 22,500 on Tuesday, reversing yesterday's advance, as attention remained focused on the Middle East conflict. As President Trump and Iranian officials send contradictory signals on ending the war, reports that Saudi Arabia and the UAE could become involved raise the risk of escalation and uncertainty. Market participants also scrutinized flash PMI surveys for insights into the economic consequences of the war and higher energy costs. Germany's private sector growth slowed to a three-month low, with the services sector losing further momentum. Tech and industrials led sectoral losses. In equities, SAP and Infineon were among the worst performers, down 3.6% and 2.1%, respectively. Bayer fell nearly 3% on news of potential stake sale. Airbus, Rheinmetall, MTU Aero Engines and Siemens also struggled, falling between 0.8%-2%. Deutsche Bank lost 0.5%. On the upside, Brenntag, BASF and Deutsche Telekom saw the biggest gains, each rising more than 1%.