German equities extended modest losses from the start of the week on Tuesday, with the DAX down 0.2% at 25,946 points in early Xetra trading. Rising oil and gas prices weighed on sentiment, as Brent crude approached the $100 per barrel mark (one barrel is 159 liters).
QC Partners analyst Thomas Altmann said investors had not yet been rattled by the oil move, but if prices stayed elevated or rose further, damage to the global economy could be significant and equity markets could not ignore them indefinitely. He said the market currently favored a brief escalation wave between the United States and Iran followed by a rapid decline in oil prices.
The MDAX of mid-cap stocks was little changed at 32,391 points, while the EuroStoxx 50 fell 0.3%.
Infineon shares fell 2.7% after Morgan Stanley downgraded the chipmaker, saying there was little near-term upside for market expectations. Citigroup buy recommendations lifted Kion by 4.6% and Nordex by 1.1%, making Kion the top MDAX performer. DWS shares rose 2.3% after Jefferies issued a buy recommendation; the asset manager's stock has gained more than 37% since the start of the year.
In the SDAX, Hornbach Holding jumped 8% to its highest level since the end of last year, after the home-improvement retailer reported robust demand in its second fiscal quarter.
