The DAX Index Opens 0.35% Lower

The DAX Index decreased 210 points or 0.80 percent on Tuesday to close at 26128 points. The decline was led by Infineon (-7.15%), Siemens Energy (-5.23%) and HeidelbergCement (-2.65%). On the upside, the strongest performers were SAP (2.24%), Bayer (1.75%) and Deutsche Telekom (1.66%).

The DAX 40 extended early losses to close about 0.8% down at 26,152 on Tuesday, the lowest since August 5th, marking the second session of losses. Risk sentiment remained weak as stalled US-Iran talks raised fears of renewed escalation, sending oil prices and bond yields higher amid growing inflation concerns. Uncertainty increased after the memorandum of understanding expired, with Washington rejecting an extension and Iran warning of a tougher response if negotiations fail to progress. Rate-sensitive tech stocks, industrials and banks faced heavy selling pressure. Chipmaker Infineon Technologies plunged over 7%, making it the worst performer. AI-related stocks Siemens Energy (-4.4%) and Hochtief (-1.1%) also declined, amid profit-taking. Other top losers included Heidelberg Materials, Siemens, Airbu, MTU Aero Engines and Continental, down between 1.9% and 3.5%: On the upside, SAP (1.9%), Bayer (1.7%) and Deutsche Telekom (1.7%) emerged as the biggest gainers.

The DAX 40 was down for a second session on Tuesday, falling about 0.4% to near 26,200, a level not seen since August 6. Rising oil prices and higher bond yields, driven by escalating tensions between the US and Iran, weighed on the market, alongside fresh jitters on AI spending. The expiry of the 60-day US-Iran interim agreement on Monday without a breakthrough added to geopolitical uncertainty. Washington has rejected an extension, while Iran warned of a tougher response if progress is not made in the coming weeks, raising concerns over further disruption in the Strait of Hormuz and global energy supplies. Technology and industrial stocks were among the hardest hit, with Infineon Technologies (-2.5%), Siemens Energy (-2.2%), Siemens (-0.9%) and Hochtief (-0.6%) ranking among the worst performers. On the flip side, BASF (-0.9%), Deutsche Post (0.9%) and Deutsche Telekom (0.8%) posted the biggest gains.