The DAX closed 0.1% higher at 26,285.96 points on Wednesday, paring earlier gains as oil prices recovered some of their midweek losses and inflation concerns eased. The index remains within striking distance of its record intraday high of 26,574 points, set in July.
Support came from signs of improving sentiment in the German economy, though gains were capped by a late-session rebound in Brent crude prices and losses in SAP, the DAX’s largest weighting. The Euro Stoxx 50 added modestly, while the FTSE 100 in London slipped slightly. U.S. benchmarks showed mixed performance, with the Dow Jones Industrial Average modestly higher and the Nasdaq 100 slightly lower.
The U.S. personal consumption expenditures (PCE) price index for July rose more than expected, a closely watched inflation gauge that the Federal Reserve favors. The data had limited direct impact on European markets, as traders focused on upcoming earnings from Nvidia, whose results are expected to validate demand for AI chips and the pace of infrastructure investment in the sector. Capital markets strategist Jürgen Molnar of RoboMarkets said the report would serve as a health check for the AI boom, with investors scrutinizing whether demand remains robust and whether spending on AI infrastructure continues at a high level.
SAP shares fell nearly 3% after UBS withdrew its buy recommendation, citing valuation concerns. Analyst Michael Briest maintained a neutral stance, noting that while SAP appears reasonably priced, investor sentiment remains fragile. Deutsche Bank advanced more than 4%, the strongest gain among DAX components, after Executive Board member Isabel Schnabel of the European Central Bank signaled support for higher interest rates to curb inflation risks. Higher rates typically benefit banks through stronger net interest margins. Landesbank Baden-Württemberg also highlighted Deutsche Bank’s strong second-quarter results and favorable operating environment.
Heidelberg Materials led DAX gains with a rise of more than 5%, followed by Qiagen, which added 1.7% on reports that private equity firms EQT and KKR are in talks to acquire the diagnostics company at $50 per share. E.ON gained 1.5% after Berenberg upgraded the utility from ‘Hold’ to ‘Buy,’ citing attractive entry levels and growth potential in Germany’s power grid.
In the MDax, steelmakers Thyssenkrupp and Salzgitter surged as the broader metals sector strengthened. Analysts noted that Chinese steel producers are under pressure from high raw material costs and weak domestic demand, which could shift global supply dynamics amid geopolitical tensions and trade barriers. The European Union has imposed anti-dumping tariffs on Chinese steel imports, while U.S. President Donald Trump has threatened additional duties on Canadian steel.
