German shares are expected to open lower on Tuesday, with the DAX index seen slipping modestly as elevated oil and gas prices weigh on sentiment. Brent crude rose to its highest level since early June in the morning session, a development analysts said could pressure global growth if sustained.
Thomas Altmann of QC Partners said investors have so far not been rattled by the energy-price move, but if crude remains high or rises further, the damage to the world economy could be significant. He added that equity markets could not permanently ignore the oil price. For now, he said, the market is betting on only a brief escalation between the United States and Iran and a quick fall in oil prices.
An hour before the open, the X-DAX futures indicator stood at 25,936 points, down 0.3% from Monday's close. The Euro Stoxx 50 was also expected to fall 0.3%.
In individual shares, analyst notes drove moves against the previous Xetra close. Infineon shares fell about 3% on Tradegate after Morgan Stanley downgraded the stock. Citi's buy recommendations helped Kion and Nordex gain 4.5% and 3.3%, respectively. DWS shares rose 2% after Jefferies issued a buy recommendation.
