The DAX held near the 26,000 mark on Wednesday, declining just 0.19% to 26,078 points as the German benchmark index resisted broader weakness in global technology shares. The MDax for mid-cap companies and the Euro Stoxx 50 were little changed at 31,834 and 4,880 points, respectively.
Technology stocks bore the brunt of the losses, with semiconductor values leading declines in Asia and U.S. trading. The South Korean Kospi, once a barometer for AI-related momentum, has more than halved from its late-June peak after doubling earlier in the year. The index’s recent recovery now faces renewed pressure.
The DAX reached a record high just last week near 26,500 points but has since struggled to sustain gains. Rising bond yields and geopolitical tensions in the Middle East have tempered investor risk appetite, according to Stephen Innes, head of market strategy. Technology shares are particularly sensitive to interest rates due to high levels of debt-financed investment, though some analysts suggest the most skittish investors may have already exited during July’s selloff.
Among DAX components, Infineon led declines with a 1.6% drop, followed by Jenoptik in the MDax at 1.5% and Elmos Semiconductor at 1.7%. In the SDax, Heidelberger Druckmaschinen slumped 3.1% despite reiterating full-year guidance despite a weak first quarter, where revenue and operating profit fell short of expectations. The company also reported a wider net loss compared with the prior-year period.
Pharmacy stocks Redcare Pharmacy and DocMorris also retreated 0.9% each, failing to sustain gains from first-half results. Swiss online pharmacy Redcare reported reduced losses in the first six months, driven by strong growth in prescription medications and digital services, and raised its annual revenue and adjusted EBITDA guidance.
Defense sector strength lifted Renk shares by 2.8% to €51.36 after JPMorgan’s David Perry highlighted potential takeover interest. Perry, who set a €75 price target, cited significant consolidation potential in the sector, noting Renk’s shares last traded at that level in October. Vincorion surged 5.9% on spillover optimism, while Hensoldt edged up and Rheinmetall fell 0.9%.
