The DAX extended its correction on Wednesday, declining 0.44% to 25,856 points as oil prices and bond yields remained elevated. The move pushed the index further from the psychologically significant 26,000 mark, though it has yet to test the 50-day moving average at 25,648 points.
The MDax of mid-cap stocks fell 1.04% to 31,839 points, while the Euro Stoxx 50 slipped marginally. U.S. equity futures signaled a subdued opening, following declines of up to 4% in Asian tech-heavy indices such as South Korea’s Kospi, Japan’s Nikkei 225, and Taiwan’s Topix.
Geopolitical tensions in the Middle East continued to weigh on sentiment, with the U.S. and Iran exchanging military actions. The U.S. targeted air defense and radar systems of Iran’s Revolutionary Guards, while Iran retaliated with missile and drone strikes on allied nations including Jordan, Kuwait, and Bahrain. Additionally, two oil tankers reportedly struck sea mines in the Strait of Hormuz, a critical shipping route.
Mark Haefele, chief investment officer for wealth management at UBS, maintained a constructive outlook for Eurozone equities despite near-term pressure. He attributed rising inflation primarily to energy costs and does not expect the European Central Bank’s widely anticipated rate hike next week to trigger a broader tightening cycle. Haefele also cited improving economic activity, stronger corporate earnings, and reasonable valuations as supportive factors for equity markets.
Among individual stocks, GEA Group led decliners with a 2.5% drop to €65.15 after the Kuwait Investment Authority (KIA) announced a secondary offering of roughly five million shares priced between €64.85 and €65.50. KIA’s stake in GEA stood at 10.5% prior to the placement.
Volkswagen shares fell 2.6%, extending a year-to-date decline of more than 25% as the automaker prepares to exit the Euro Stoxx 50 index on September 21. The removal reflects broader challenges at the Wolfsburg-based company. Fraport bucked the trend with a 0.3% gain despite its scheduled removal from the Stoxx Europe 600, while auto supplier Aumovio declined 1.7%.
Deutsche Bank was a notable outperformer, rising 1% to levels last seen in early 2014, with Goldman Sachs upgrading its rating to buy. Analyst Chris Hallam cited the bank’s improving profitability outlook and attractive valuation. Commerzbank shares also edged up 0.8% ahead of talks with UniCredit regarding its largest shareholder’s potential involvement in an acquisition.
Adidas recovered 1.5%, supported by a positive outlook from Barclays, which upgraded its rating on the sportswear maker. Analyst Viktoria Petrova highlighted the company’s innovation days scheduled for September 23–24 as a potential catalyst.
