DAX Closes at Near 3-Week Low

The DAX 40 finished about 0.4% down at 25,983 on Thursday, the lowest since July 31 and extending losses for the fourth session. Further increases in oil prices due to the Iran war and rising yields in the bond markets weighed on market sentiment. Against the backdrop of deadlocked negotiations with Tehran, US President Trump threatened Iran with an "economic war". Retailers Adidas (-2.7%) and Puma (-1.8%) were among the top losers, tracking losses in US retail giant Walmart after its disappointing results and cautious outlook. Other laggards included MTU Aero Engines (-2%), Scout24 (-1.9%), Rheinmetall (-1.7%), Airbus (-1.5%) and Deutsche Telekom (-1.4%). Brenntag fell 1.2% after Bank of America resumed coverage with an Underperform rating and a €55 price target. On the flip side, Qiagen NV outperformed, rising 3.1%, with Symrise (+1.9%) also advancing solidly.

The DAX Index fell 108 points or 0.41 percent on Thursday to close at 25983 points. Leading the losses are Adidas (-3.14%), Rheinmetall (-1.80%) and MTU Aero Engines AG (-1.59%). Top gainers were Qiagen NV (3.25%), Symrise (2.03%) and Continental (1.13%).

The DAX 40 fell about 0.3% to below 26,000 on Thursday, the lowest since late July, marking the fourth session of losses. Investors stayed cautious cautious amid inflation concerns and geopolitical uncertainty, despite a surprise move by the US Treasury that helped reduce pressure on government bonds worldwide. Germany’s 10-year Bund yield remained elevated at a 15-year high amid expectations of increased defence spending. Meanwhile, negotiations aimed at resolving the US-Iran conflict remained deadlocked. Against this backdrop, the Trump administration appears to be shifting away from military intervention and toward a strategy of intensified economic pressure on Tehran. Sectorally, weakness in software, chemical and telecom stocks more than offset gains in autos, chipmakers and utilities companies. Brenntag led losses among stocks, dropping 3%, followed by Rheinmetall (-1.7%), SAP (-1.6%) and BASF (-1.4%). On the upside, Continental (1.7%) and Qiagen NV (1.4%) advanced the most.