The DAX Index Closes 0.00% Higher

The DAX 40 pared some early losses to close virtually unchanged at 26,008 on Tuesday, as caution prevailed across European markets. Soaring oil prices and heightened tensions in the Middle East rekindled inflation concerns ahead of monetary policy decisions from major central banks. The ECB is expected to raise borrowing costs by another 25 basis points to 2.5% on Thursday, which would mark the second rate hike this year, while markets anticipate a similar move from the Fed next week. Gains in pharmaceutical stocks, industrials and autos were partly offset by weakness in the technology sector and insurers. Fresenius SE & Co surged 3.2%, leading gains after UBS reiterated its positive outlook on the stock with a Buy rating. Defense stocks such as Rheinmetall also strengthened, rising nearly 3%, supported by favorable analyst commentary. Volkswagen and BMW advanced 2.1% and 1.4%, respectively. On the flipside, Infineon Technologies dropped 3.7% following a downgrade by Morgan Stanley..

The DAX Index went up by 1 points or 0.00 percent on Tuesday to close at 26008 points. The rise was led by Fresenius (3.21%), Rheinmetall (3.09%) and Volkswagen (2.54%). On the downside, the weakerst performers were Infineon (-4.10%), Hannover Rueck (-2.21%) and Munich RE (-2.20%).

The DAX 40 was down for a second session on Tuesday, falling 0.3% to around 25,930, in line with its European peers. Persistently high oil and gas prices amid continued hostilities in the Middle East fueled inflation worries ahead of this week’s European Central Bank meeting. The ECB is expected to raise borrowing costs by another 25 basis points to 2.5% on Thursday, which would mark the second rate hike this year. The technology sector was the hardest hit, alongside banks, insurers and industrials. Infineon Technologies slumped nearly 3%, making it the worst performer, following a downgrade by Morgan Stanley to "equal weight" from "overweight". Other notable decliners indluded Heidelberg Materials, Continental, Siemens Energy, Adidas, Airbus and Deutsche Bank, with losses ranging between 1%-2%. On the upside, Fresenius SE & Co and Scout24 advanced the most, rising 1.7% and 1.5%, respectively.