Germany's main stock index opened lower on Monday, dragged down by fresh oil-price inflation concerns and deepening anxieties over artificial intelligence development.
The DAX dropped 0.5% to 25,431 points in early trading, while the mid-cap MDAX fell 1.1% to 31,305. The EuroStoxx 50 declined 0.8%.
"The DAX remains caught in a cocktail of uncertainties — geopolitical risks, monetary policy questions and AI worries," said Timo Emden, market analyst at CapTrader. "With each further oil-price spike, concern grows that inflation will be rekindled and central banks could be forced into difficult positions."
Oil prices advanced on the unresolved situation around the Strait of Hormuz. Saudi Arabia, the world's largest oil exporter, faced additional pressure after drone strikes forced the kingdom to shut down a key pipeline, as threats intensified at the Bab al-Mandab strait by Yemen's Houthi militia.
Separately, AI safety concerns deepened after Anthropic CEO Dario Amodei warned that a KI swarm could potentially seize control of the entire internet within six to twelve months, causing hundreds of billions of dollars in damage. Amodei called on the industry to slow the development of its most powerful models. OpenAI CEO Sam Altman expressed a similar view, arguing that the pace of advancing KI models needs to be reduced.
German shares linked to the KI theme came under heavy selling pressure. Siemens Energy, Infineon and Hochtief — among the weakest DAX performers — posted losses of up to 6.3%. Chip-equipment makers were hit harder still: Aixtron, Suss Microtec, Siltronic and Jenoptik shed as much as 8%.
Software names fared better. SAP led DAX gainers with a 2.5% advance, while Nemetschek topped the MDax with a 3.3% rise. Bayer climbed 2.1%, bolstered by a court hearing in Missouri on Monday regarding final approval of a class-action settlement over Roundup litigation; the company said a ruling is not expected until later.
Adidas shares dipped 0.4% after Baird downgraded the sportswear maker from Outperform to Neutral and lowered its price target to 165 euros from 180 euros.
