DAX Finishes Lower

Frankfurt's DAX 40 finished about 1% down at 24,939 on Thursday, its lowest since July 23, pressured by rising oil prices and elevated bond yields. Middle East risks remained high, with diplomatic efforts to resolve the Middle East conflict apparently stalled. At the same time, accelerating inflation in major European economies added pressure on the ECB to keep rates higher for longer. Almost all sectors recorded declines, led by pharma & healthcare, banks, autos. Bayer (-5.2%) was the biggest laggard among stocks, followed by Volkswagen (-3.4%), Merck (-2.6%), Deutsche Bank (-2.4%) and Fresenius SE & CO (-2.3%). The tech sector also lost momentum, with Infineon Technologies down 0.1%. On the upside, Heidelberg Materials climbed 3% to lead the index after JPMorgan issued a “Buy” rating.

Frankfurt's DAX 40 fell more than 1% to trade below the 25,000 mark on Thursday, its lowest since July 23, as traders contended with higher oil prices and elevated bond yields at the start of the fourth quarter. Geopolitical risks remained elevated, with diplomatic efforts to resolve the Middle East conflict apparently stalled, despite signs of improved energy flows from the Gulf. At the same time, recent inflation data from European economies showed intensifying price pressures, raising expectations of higher interest rates for longer. Losses were widespread across sectors, particularly among banks, software companies, and pharma and healthcare stocks, while tech bucked the trend. Top losers included Deutsche Bank, Bayer, Zalando, SAP, Heidelberg Materials, Fresenius SE & Co and Deutsche Post, each falling over 2%. Infineon Technologies (1.7%) and Continental (0.9%) were the only gainers.

The DAX Index is falling 315 points. Losses were driven by Deutsche Bank (-2.39%), Zalando (-2.29%) and Bayer (-2.27%).