The DAX Index Closes 0.23% Lower

The DAX 40 gave up early gains to close about 0.2% lower on Wednesday after hitting a fresh intraday record of 26,574, ending a four-day rally as investors took profits amid uncertainty over the Iran conflict and Strait of Hormuz reopening. Focus also remained on economic data and earnings. Software, consumer cyclicals, telecoms, utilities and autos came under pressure, while industrials and tech stocks advanced. E.ON fell nearly 3% after modest first-half earnings growth, with its CEO warning of potential attacks on the country’s energy infrastructure. Brenntag dropped 2.2% after JPMorgan maintained its Sell rating even after solid Q2 performance and an improved full-year earnings outlook. Rheinmetall led gainers with a 2.3% rise, followed by Siemens Energy (+1.9%) and Infineon Technologies (+1.1%). TKMS surged 8.5% after strong results and an upgraded full-year revenue outlook.

The DAX Index dropped 60 points or 0.23 percent on Wednesday to close at 26331 points. Losses were led by E.ON (-3.15%), SAP (-2.73%) and Adidas (-2.28%). Offsetting the fall, top gainers were Rheinmetall (2.79%), Siemens Energy (1.98%) and Hochtief (1.12%).

The DAX 40 extended initial gains on Wednesday, rising 0.5% to a fresh high above 26,500 and extending gains for a fifth straight session. Traders weighed economic data, Middle East developments and corporate earnings. The latest US data showed inflation eased in line with expectations in July, while core inflation also slowed slightly, tempering expectations of Fed rate hikes. Tech stocks rallied, with Infineon Technologies rising 3.8%, following surprisingly strong earnings from US companies CoreWeave and Super Micro Computer. Industrials also advanced solidly, led by Rheinmetall (4.5%). Siemens Energy advanced 4%, buoyed by an upgraded outlook from wind turbine maker Vestas. TKMS jumped over 11% in the wake of solid results and an upgraded full-year revenue outlook. By contrast, TUI dropped nearly 2% after missing Q3 operating profit expectations. Brenntag fell 1.8% as JPMorgan maintained its Sell rating, even after solid Q2 performance and an improved full-year earnings outlook.