The German blue-chip index steadied above 26,000 points on Tuesday, with the X-Dax indicating a 0.3% gain to 26,196 points one hour before market open.
Investor caution persisted ahead of two key events later in the week: Nvidia’s quarterly earnings on Wednesday and remarks by U.S. Federal Reserve Governor Kevin Warsh at the Jackson Hole symposium on Friday. The DAX had closed above the 26,000-point mark on Monday, extending gains from the prior session.
Geopolitical developments offered mixed signals overnight. The U.S. indicated a shift toward economic isolation of Iran, framing it as a potential 'economic war' aimed at severing Tehran’s trade ties. Analysts at Commerzbank noted the plan’s lack of precision, highlighting uncertainty over the enforcement of secondary sanctions targeting Iran’s top trading partners, particularly China.
In Europe, rising energy costs linked to tensions around the Strait of Hormuz weighed on investor sentiment. Deutsche Bank strategist Ulrich Stephan warned that elevated energy prices could pressure margins in energy-intensive sectors across the continent and reinforce expectations for a more restrictive stance from the European Central Bank.
Domestic data releases added context to the session. The Ifo Institute’s business climate index, due mid-morning, was expected to rise further, according to Landesbank Helaba economists. While the improvement in German business sentiment was viewed positively, analysts cautioned against excessive optimism, citing ongoing drought conditions, low water levels, and persistent geopolitical risks that continue to cloud the outlook.
Sectoral performance diverged, with chip stocks attempting to recover after Monday’s weakness. Infineon and Süss MicroTec advanced by roughly 1% each in pre-market trade on Tradegate, supported by ongoing momentum in artificial intelligence investment. UBS raised its global AI spending forecast for 2027 to $1.2 trillion.
Siemens Energy edged higher by 1.6% on Tradegate, following reports that Goldman Sachs had been retained to explore a potential majority sale of its steam turbine business. While the company’s plans for a divestment were already known, the high valuation implied—estimated at over €10 billion—was seen as a potential catalyst for investor interest.
Pharmaceutical group Dermapharm confirmed its full-year 2026 outlook after releasing first-half results, with shares rising 1% in thin pre-market trade. In contrast, specialty packaging firm Gerresheimer fell 7% on Tradegate after interim CEO Uwe Röhrhoff announced his resignation.
