The DAX Index Closes 1.10% Lower

The DAX Index decreased 288 points or 1.10 percent on Tuesday to close at 25970 points. The decline was led by SAP (-3.40%), Rheinmetall (-3.32%) and Scout24 (-2.54%).

The DAX 40 extended early losses to close about 1.1% lower at 25,958 on Tuesday, a level not seen since late July, marking the second day of losses. Rising oil prices and bond yields amid intensifying Middle East hostilities are weighing on markets worldwide, as concerns over renewed inflation fuel expectations of interest-rate hikes. Eurozone inflation climbed to 3.3% in August, its highest since September 2023, marking a second straight monthly increase and reinforcing expectations of a tighter ECB policy stance. Almost all sectors recorded losses, with techs, travel-related stocks, industrials and autos among the hardest hit. Software giant SAP dropped over 3%, making it the biggest laggard, followed by Rheinmetall, Siemens and MTU Aero Engines, falling more than 2% each. On the upside, insurers Munchener Ruck and Hannover Ruck added 1.1% and 0.5%, while Merck and Siemens Halthineers gained around 0.5% each.

The DAX 40 fell 0.4% to around 26,140 on Tuesday, the lowest since August 24, as September began with investors wary that a prolonged US-Iran conflict could fuel energy-driven inflation and prompt tighter monetary policy. Oil prices and global bond yields continued to rise on the back of flared-up hostilities in the Middle East, with traders increasingly pricing in interest rate hikes by the ECB and the US Federal Reserve. By sector, energy-sensitive industrials, banks and autos were the hardest hit, while gains in pharma stocks, chipmakers, chemical companies and utilities helped cushion the losses. Software giant SAP led losses among stocks, slipping 2.5%. Rheinmetall, MTU Aero Engines, Scout 24, BMW, Mercedes-Benz Group and Volkswagen posted losses between 0.8%-2.1%. Deutsche Bank and Commerzbank fell more than 1% each. On the upside, Merck (2.3%), RWE (1.5%) and Symrise (1.5%) were the top performers.