The DAX 40 experienced a downturn, closing near 25,150, a 0.5% decrease from the previous day’s one-month high. Market sentiment was influenced by the ongoing quarterly earnings releases, geopolitical uncertainties, including US-Iran tensions and the lack of progress in nuclear talks, and concerns regarding potential interest rate hikes following the release of the FOMC minutes.
- The DAX 40 fell 0.5% to near 25,150.
- Airbus shares tumbled more than 5% after lowering its main jet production target.
- Volkswagen, BMW and Mercedes-Benz Group fell 2.1%, 1.6% and 1.4%, respectively.
- Vonovia shares rose nearly 2% after Morgan Stanley upgraded the company to Equalweight.
- US-Iran tensions and stalled nuclear talks raise concerns of military action.
- FOMC minutes showed officials divided on interest rates, hinting at potential hikes if inflation persists.
This suggests a period of volatility and uncertainty for the DAX. Production issues within major companies like Airbus are weighing down the index, while external factors like geopolitical instability and the potential for interest rate hikes are contributing to a cautious market environment. Upgrades for individual companies offer limited positive offset to these prevailing negative influences.