The DAX Index Closes 1.18% Lower

The DAX Index dropped 297 points or 1.18 percent on Thursday to close at 24807 points. Losses were led by Volkswagen (-4.01%), Fresenius (-3.92%) and Infineon (-3.36%).

Frankfurt's DAX closed 1.2% lower at 24,823 on Thursday, reaching it lowest level in almost two months, amid elevated energy prices and persistent concerns over Europe's fiscal outlook. High sovereign yields due to French concerns continue to pressure banks and financials. Deutsch Bank fell 0.7%, while Commerzbank declined 2.4% as Germany’s finance minister said he was coordinating with counterparts on UniCredit’s takeover bid for the German lender. Tech and industrials were also under pressure, with Infineon down 3.4% and Siemens falling 2.6%. Automakers fell as European buyers continue to shift toward electric vehicles amid higher fuel prices, with Volkswagen down 4.5%. BMW (2.8%) and Mercedes Benz (2%) also fell. On the upside, defense Rheinmetall (0.9%) advanced while British Premier Burnham stated the UK would be open to Germany joining a partnershipto develop a new fighter jet alongside other countries. E.ON rose 0.4% after reporting its successful acquisition of OVO in the UK.

Frankfurt’s DAX 40 fell 0.8% to below 24,900 in early trading on Thursday, extending losses from the previous session to hit its lowest level since July 23, as a renewed bond selloff and rising oil prices heightened inflation concerns. Oil prices climbed further amid reports that the White House had requested options for potential strikes on Iran before the US midterm elections. Hawkish Fed minutes added to pressure on equities, while investors now turn their attention to the ECB’s latest meeting accounts for clues on its policy outlook. Sentiment was also weighed down by continued weakness in Germany’s external demand, with exports falling 0.8% month-on-month in August. Among individual stocks, semiconductor maker Infineon led the declines, falling more than 3%, while Deutsche Bank extended its losses for a second day, dropping 1.8% as eurozone bond yields moved closer to their recent highs.