The DAX Index Opens 1.13% Lower

The DAX 40 fell more than 1% to around 24,860 on Wednesday, following modest gains in the previous two sessions, underperforming its regional peers. Investors kept a close eye on the earnings season while also weighing elevated tensions in the Middle East. Oil prices continued to rise following renewed US strikes against Iran and the reimposition of a blockade on its ports, despite President Trump's withdrawal of a proposed 20% tax on goods transiting the Strait of Hormuz. At the same time, the technology sector came under pressure. The sell-off was broad-based, with techs, retailers and chemical companies among the worst performers. Infineon Technologies dropped over 2% despite upbeat results from ASML. Software company SAP fell 1.7%. Zalando (-3.1%), Rheinmetall (-2.4%) and BASF (-2.1%) also posted steep losses.

The DAX Index is dropping 283 points. Leading the losses are Rheinmetall (-2.98%), Infineon (-2.56%) and Zalando (-2.41%).

The DAX 40 erased early losses to close marginally higher at 25,147 on Tuesday amid a rebound in tech stocks and easing oil prices after President Trump dropped the proposed 20% fee on cargo transiting the Strait of Hormuz. Sentiment was further supported by softer-than-expected US inflation data, which reduced expectations of further Federal Reserve rate hikes, and strong second-quarter earnings from major US banks. Utilities, retailers, banks, chemical companies, tech and industrials were among the top performers, offsetting weakness in software, pharmaceutical, and leisure stocks. Brenntag, Siemens Energy, Zalando, RWE ,E.ON, Hochtief and Infineon Technologies advanced the most, rising between 1.4% and 2.4%. On the flip side, Siemens Healthineers (-3.6%), SAP (-2.9%), Henkel (-2.%), Bayer (-2%) and TUI (-0.9%) faced increased selling pressure.