DAX Underperforms Peers

The DAX 40 drifted lower to around 24,800 on Wednesday, ending a four-day winning streak amid weakness in heavyweight autos following BMW's profit warning. BMW shares plunged nearly 7% after it said on Tuesday it had cut its 2026 targets, citing the Middle East conflict and weakness in the Chinese market, and signalling a possible cost-saving plan. Mercedes-Benz Group, Volkswagen, and Porsche Automobil followed closely, falling between 1.8%-3%. On the upside, Zalando led gains, rising 2.3%, while Commerzbank and Symrise each advanced 1.3%. Meanwhile, caution prevailed ahead of the Federal Reserve’s policy announcement and the formal signing of an interim US-Iran peace agreement. While the US central bank is widely expected to hold rates steady, remarks from new Fed Chair Kevin Warsh will be closely scrutinized for clues on the policy outlook.

The DAX Index is dropping 53 points. Leading the losses are BMW (-6.75%), Mercedes-Benz AG (-3.20%) and Volkswagen (-2.45%). Top gainers were Zalando (1.89%), MTU Aero Engines AG (1.05%) and Rheinmetall (0.93%).

The DAX 40 pared gains to close marginally up at 24,910 on Tuesday, but still near a two-week high, marking the fourth session of advances. The prospect of a peace deal in Iran and the reopening of the Strait of Hormuz continued to support market sentiment. The memorandum of understanding is scheduled to be formally signed on Friday, leaving a 60-day window for negotiations toward a final agreement. Insurers and banks, as well as energy-sensitive industrials were among the top performers, while the tech sector and autos saw heavy pressure. GEA Group led gains, rising 5.1%, after Deutsche Bank raised its rating from Neutral to Buy. Münchener Rück, Hannover Rück and Allianz also advanced, gaining up to 1.3%, while Deutsche Bank and Commerzbank rose 0.6% and 0.3% respectively. Other top gainers included Qiagen NV, Deutsche Post, Siemens and Airbus. Onn the downside, automakers BMW and Mercedes-Benz Group dropped 5.2% and 2.8%, respectively, while Infineon Technologies shed 2.3%.