Following a volatile trading session in Frankfurt, the German benchmark DAX index closed 0.79 percent lower at 25,199.19 points on Wednesday. The decline pushed the index decisively below its 100-day moving average, a technical level that had provided support over previous sessions. For the month of September, traditionally viewed as a weak period for equities, the DAX recorded a four percent loss, though it posted a 0.8 percent gain for the third quarter. The mid-cap MDAX index fell 0.13 percent to 30,842.53 points, while the EuroZone EuroStoxx 50 closed 0.8 percent lower.
Rising energy costs pushed German inflation above the three percent threshold for the first time since late 2023. According to preliminary figures from the Federal Statistical Office, consumer prices rose 3.3 percent in September compared with the same month last year, up from 2.9 percent in August. Similar upward trends were reported in France and Italy following earlier data from Spain, keeping figures well above the European Central Bank's two percent target. Analysts at Helaba noted that markets are pricing in additional rate hikes by year-end and into the first quarter.
In contrast, economic data from the United States offered a more positive backdrop. The US PCE deflator for August rose less than projected, while private sector employment figures from ADP showed stronger-than-expected growth ahead of the official monthly jobs report. CMC Markets chief analyst Andreas Lipkow described the US data as favorable for equities, citing robust growth and lower-than-feared inflation pressure, though rising oil prices and bond yields continued to prompt investor caution.
Among individual equities in the DAX, BMW shares advanced 1.5 percent, recovering from late-session losses tied to capital markets day disclosures as investors digested the automaker's multi-year plans. Conversely, Commerzbank shares finished at the bottom of the index with a four percent drop after Deutsche Bank analyst Benjamin Goy removed his buy recommendation, citing that key drivers such as rising interest income and distributions are already priced in.
In the MDAX, CTS Eventim shares fell 6.2 percent following the departure of its chief financial officer, partially cushioned by a roughly 10 million euro share purchase by CEO Klaus-Peter Schulenberg. Ionos shares dropped 5.8 percent after Bankhaus Metzler initiated coverage with a sell rating. In the SDax small-cap segment, Asta Energy declined 5.9 percent following a share disposal by Austrian investment firm ETV Montana Tech, while LPKF Laser lost 2.5 percent after cutting its annual targets due to delayed solar orders.
