The DAX Index Closes 0.84% Lower

The DAX Index fell 215 points or 0.84 percent on Thursday to close at 25361 points. Leading the losses are Siemens Energy (-2.98%), Zalando (-2.75%) and Vonovia (-2.73%). Top gainers were Deutsche Boerse (2.19%), Hannover Rueck (1.55%) and Continental (1.46%).

Frankfurt's DAX 40 extended early losses to close about 0.8% down at 25,401 on Thursday, a low level last seen in late July. Traders weighed the ECB’s latest decision, with policymakers raising rates by 25 basis points as expected and warning of persistent upside inflation risks linked to the Middle East conflict. The institution expects inflation to stay above 2% for an extended period, strengthening bets on further tightening, while surging oil prices added to concerns over renewed price pressures. Consumer cyclicals, software and technology stocks, and industrials faced the heaviest losses. Hochtief led losses, sliding over 6%, followed by Vonovia (-3%), Zalando (-2.9%), Siemens Energy (-2.8%), Adidas (-2.7%), Infineon Technologies (-2.3%) and Siemens (-2.3%). SAP dropped 2.9% ahead of the quarterly earnings reports from the two IT and software giants, Oracle and Adobe. On the upside, Deutsche Borse (2.2%), Continental (1.6%) and Hannover Ruck (1.6%) advanced firmly.

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.