The DAX Index Opens 0.06% Higher

Frankfurt's DAX 40 extended early losses, falling 0.7% to around 25,400 on Thursday afternoon, a level last seen in late July. Traders digested the ECB’s latest decision, with policymakers raising rates by 25 basis points as expected and warning of continued upside risks to inflation stemming from the Middle East conflict. The move fueled expectations of further tightening. In the meantime, oil prices surged to fresh highs, as escalating US-Iran hostilities stoked fears of a prolonged conflict. Consumer cyclicals, software and technology stocks, and industrials faced the heaviest losses. Hochtief led losses among stocks, dropping 5.1%, with Adidas, Zalando and Siemens Energy also posting steep declines. SAP slipped 2.7%, as traders were cautious ahead of the quarterly earnings reports from the two IT and software giants, Oracle and Adobe. On the gainers side, shares of Deutsche Borse (1.9%), Hannover Ruck (1.8%) and Munchener Ruck (1.5%) stood out.

Frankfurt’s DAX 40 index edged lower to 25,510 points on Thursday, touching its lowest level since late July, as oil prices continued to rise and investors awaited the European Central Bank’s policy decision later in the day. Markets have fully priced in a 25-basis-point interest-rate hike, which would mark the ECB’s second increase this year and lift the key deposit rate to 2.50%. With the move largely anticipated, investors are instead focusing on the ECB’s updated economic forecasts and President Christine Lagarde’s press conference for further clues on the future path of monetary policy. Markets currently expect two rate hikes this year, with the deposit rate projected to reach around 3.1% by late 2027. Among individual stocks, RWE (+1.7%), Porsche AG (+1.0%), DHL (+0.8%) and MTU Aero Engines (+0.4%) gained following positive comments from US investment bank JPMorgan.

The DAX Index is up by 15 points or 0.06 percent on Thursday. Top gainers are RWE (1.99%), Fresenius (1.23%) and Munich RE (1.17%). Biggest losses came from SAP (-2.62%), Adidas (-1.88%) and Bayer (-1.06%).