DAX Slips After ECB Holds Rates

Frankfurt's DAX 40 fell 0.9% to 24,930 on Thursday, retreating from a one-week high after the European Central Bank left interest rates unchanged, as expected. The ECB reiterated that the outlook for energy prices remains broadly in line with its June projections but warned that uncertainty remains elevated and that the full inflationary impact of the recent energy shock has yet to materialize. Policymakers said they will continue to monitor the shock's magnitude, duration, and potential indirect and second-round effects. Meanwhile, rising oil prices amid the ongoing Iran conflict kept inflation concerns in focus, while mixed US corporate earnings weighed on sentiment despite stronger-than-expected results from Alphabet. Among individual stocks, SAP fell 0.6% ahead of its second-quarter earnings, Deutsche Börse was little changed after its Investment Management Solutions unit narrowly missed estimates, and Sartorius slipped 1% despite reporting higher first-half revenue.

Frankfurt's DAX 40 fell 0.7% to 24,990 on Thursday as investors remained cautious ahead of the European Central Bank's policy decision. Rising oil prices, driven by the ongoing conflict involving Iran, continued to stoke inflation concerns, while a mixed round of US corporate earnings weighed on market sentiment despite Alphabet posting better-than-expected quarterly results. Markets now await the ECB's policy announcement, with rates widely expected to remain unchanged. Investors will closely watch President Christine Lagarde's press conference for any signals on the outlook for monetary policy and the possibility of a rate hike in September. Among individual stocks, SAP edged lower ahead of its Q2 earnings release, Deutsche Börse dropped 2% after its Investment Management Solutions division slightly missed estimates, and Sartorius lost 3% despite reporting higher first-half revenue. Meanwhile, FlatexDEGIRO gained 0.5% after raising its full-year profit guidance following a strong Q2.

The DAX Index is falling 198 points. Losses were driven by Infineon (-3.87%), Symrise (-2.52%) and Deutsche Boerse (-2.44%). Biggest rises came from Daimler Truck Holding AG (2.45%), RWE (0.61%) and Rheinmetall (0.60%).