Germany's leading stock index, the DAX, lost 0.37% in early afternoon trade, closing at 25,951 points. The move pushed the index back under the psychologically important 26,000‑point threshold, which it had briefly reclaimed on Friday when it rose to 26,167 points before reversing ahead of the 21‑day moving average, currently at 26,196 points.
The mid‑cap MDAX also edged lower, slipping 0.06% to 32,335 points, while the Eurozone’s blue‑chip EuroStoxx 50 fell roughly 0.2%.
Commodity markets added pressure. Brent crude for November delivery traded above $97 a barrel, reflecting heightened tension after renewed attacks on shipping in the US‑Iran conflict. A core OPEC+ group of seven members announced over the weekend that it would not raise October production targets. Goldman Sachs' co‑head of global commodities research, Daan Struyven, told Bloomberg TV that a scenario of intensified attacks could lift Brent to $120.
Political developments in Germany – the AfD’s victory in Saxony‑Anhalt and the CDU’s internal setbacks – featured in market commentary, but investors focused more on monetary policy. Consensus now expects the European Central Bank to raise its key rate by 0.25 percentage points on Thursday, to 2.5%, with no further hikes anticipated this year, according to Amundi’s head of global economics, Alessia Berardi. In the United States, a strong jobs report has many market participants betting on a Fed rate increase next week, pending Friday’s inflation data.
Sector‑specific moves were mixed. Semiconductor stocks led gains; Infineon rose 3.2% on the back of strong performances by Samsung and SK Hynix in South Korea and a fresh recommendation from Warburg Research. Peer companies Elmos, Aixtron, Suss Microtec and Siltronic also posted advances.
Space‑technology firm OHB continued its recovery from a year‑low, gaining 6.2% after competitor Isar Aerospace successfully completed a second test flight, delivering five satellites to orbit.
In energy, Swiss bank UBS upgraded EON to “buy,” sending the utility up 1.7%. RWE followed with a 2.4% rise, while wind‑turbine maker Nordex surged 10.2% after Bank of America issued a buy recommendation.
Conversely, the interest‑rate‑sensitive real‑estate sector came under pressure. Vonovia fell 2.5% after Goldman Sachs analyst Jonathan Kownator withdrew his buy rating, citing a cautious tone at the sector conference amid rising rates. LEG, TAG Immobilien and Aroundtown also posted losses.
Overall, the German market’s dip reflects a confluence of higher‑for‑longer rate expectations, volatile oil prices and sector‑specific earnings dynamics.
