The German DAX index held above 26,000 points on Monday, trading down 0.09% at 26,114, as investors adopted a cautious stance ahead of two pivotal events later this week. The index remained above both the psychologically significant 26,000 mark and its 21-day moving average, which it briefly tested during the session.
Market participants are treading lightly before Nvidia releases its quarterly results on Wednesday after U.S. market close and Federal Reserve Chair Kevin Warsh delivers remarks at the Jackson Hole economic symposium on Friday. Warsh’s comments on monetary policy direction are expected to influence U.S. Treasury yields, particularly in the AI sector where capital expenditure needs are substantial. U.S. inflation data due on Wednesday will also be closely watched by policymakers.
The DAX’s stability contrasted with broader global equity weakness. U.S. benchmarks rose on Friday but opened lower on Monday, while Asian markets declined, with South Korea’s tech-heavy Kospi under notable pressure.
In Germany, semiconductor and AI-linked stocks came under selling pressure as profit-taking spread across the sector. Infineon and Elmos each fell about 1%, while Suss Microtec and Aixtron dropped 2.5% and 0.8%, respectively. Samsung’s shares fell sharply despite announcing dividend and share buyback plans, and SK Hynix also declined.
Siemens Energy, another beneficiary of AI-driven data center demand, fell 1.6%. The company is viewed as a key player in supplying infrastructure to the AI boom, alongside semiconductor manufacturers. Automotive stocks were also weak, with Volkswagen leading losses at 1.7% after CEO Oliver Blume warned of sweeping restructuring measures amid a global industry downturn. BMW fell 0.8%, as Blume urged workforce unity to navigate what he described as the largest transformation plan in Volkswagen’s history.
Defensive sectors showed resilience, with steelmaker Thyssenkrupp gaining 2.4% and chemical companies Brenntag and Wacker Chemie rising on Monday.
The MDax of mid-cap stocks edged up 0.07% to 32,132, while the Euro Stoxx 50 slipped 0.2%.
Analysts noted a wait-and-see attitude among investors, with eToro’s Josh Gilbert saying traders are refraining from bold moves until Nvidia’s results and Warsh’s policy signals clarify the near-term outlook.
