The DAX Index Closes 0.74% Lower

The DAX 40 reversed course to close about 0.7% lower at 24,418 on Tuesday, the lowest since May 19, amid renewed weakness in the tech sector. The index tracked losses on Wall Street as concerns about high valuations among US tech giants resurfaced ahead of SpaceX’s IPO on Friday. Meanwhile, Middle East news was broadly reassuring as Israel and Iran halted strikes following an appeal from US President Trump, who said a deal with Tehran was close to being finalized. In the meantime, US Energy Secretary Chris Wright pointed to increasing shipping traffic through the Strait of Hormuz. The tech sector was the hardest hit, with Infineon Technologies and SAP down 3.4% and 2.2%, respectively. Siemens Energy also faced heavy pressure, dropping nearly 6%. On the opposite side, Symrise led gains, climbing 7.2%, after JPMorgan reaffirmed its Buy rating and kept its €100 price target unchanged.

The DAX Index decreased 183 points or 0.74 percent on Tuesday to close at 24433 points. The decline was led by Siemens Energy (-5.92%), SAP (-2.11%) and Infineon (-2.03%). On the upside, the strongest performers were Symrise (7.46%), Henkel (2.66%) and Beiersdorf (2.47%).

The DAX 40 attempted a cautious recovery on Tuesday, trading around 24,700, supported by strength in chipmakers and some easing in Middle East tensions. Markets were encouraged by Israel and Iran agreeing to halt strikes against each other following an appeal from US President Trump, who indicated that diplomatic talks with Iran were moving forward. Better-than-expected German industrial production and exports for April added further support. Meanwhile, traders braced for Thursday’s ECB decision, where a 25 bps rate hike is widely expected. Symrise led gains among stocks, up 4.1%, after JPMorgan reaffirmed its Buy rating and kept its €100 price target unchanged. Infineon Technologies also advanced firmly, up 3.3%. Other top performers included Deutsche Bank (2.5%), Allianz (1.4%) and Commerzbank (1.4%). On the downside, SAP underperformed, falling 1.5%. BASF, Bayer Brenntag and Siemens Energy also faced increased pressure, with losses around 1% each.