The German DAX extended losses Tuesday, slipping 0.3% to 26,250 points as investors navigated a confluence of headwinds including elevated oil prices and rising bond yields. The index remained roughly 1.2% below its all-time high of 26,574 points set the prior Wednesday.
Bond markets added pressure, with 10- and 30-year German government bond yields climbing to 15-year highs, a move mirrored in France and the U.S. according to Thomas Altmann, portfolio manager at QC Partners. The rise in yields reflected growing inflation concerns amid persistent geopolitical risks.
Oil prices extended gains, with Brent North Sea crude rebounding above $90 per barrel. The increase followed stalled diplomatic efforts to resolve the ongoing conflict between the U.S. and Iran, with a mid-June framework agreement deadline having lapsed without progress.
Sector performance was broadly negative, led by energy and technology-linked names. Siemens Energy shares fell 3.6% after earlier reaching their highest level since early July. Chip and AI equipment suppliers such as Infineon, Aixtron and Suss Microtec also retreated amid profit-taking in recently recovered tech stocks.
Corporate developments contributed to mixed trading. Hugo Boss shares slipped 0.3% after Frasers Group increased its stake in the fashion group to just under 48%, following the expiration of the British retailer’s voluntary takeover offer deadline on August 13. Tool manufacturer Einhell reported half-year results and reiterated its full-year sales guidance, though its stock declined 2.3%.
Specialty chemicals group Lanxess dropped 3.6% after Exane BNP analyst David Dymonds downgraded the stock to Underperform. In contrast, Sixt advanced 3.6% following an upgrade from Berenberg, which cited strong European summer travel demand as a supportive factor despite broader consumer weakness. Schott Pharma gained 3.2% after Barclays analyst Jonathon Unwin highlighted potential operational improvements driven by new contracts and growth in specialized packaging solutions.
European peers showed limited divergence, with the Euro Stoxx 50 down less than 0.5%. U.S. equity markets indicated caution, with profit-taking noted on the Nasdaq.
