The German benchmark DAX slipped 0.07% to 26,111 points shortly after the Frankfurt open on Thursday, paring earlier losses as investors digested weak overnight cues from global equity markets.
The MDax of mid-cap stocks fell 0.17% to 31,786, while the Euro Stoxx 50 remained flat. Losses were concentrated in technology shares, which had led gains during the artificial-intelligence rally but have since retraced sharply from recent peaks. The South Korean Kospi, a bellwether for AI-related equities, more than doubled from its year-start levels by mid-June before losing over half its gains by late July. Its subsequent rebound is now under pressure as renewed selling resumes.
European technology stocks, including DAX components Infineon, Aixtron, Jenoptik and Elmos, extended declines. Infineon dropped 1.1%, while Aixtron and Jenoptik fell 1.5% and 0.9%, respectively. Elmos slid 1.8%. The sector’s sensitivity to rising bond yields and geopolitical risks in the Middle East has weighed on sentiment, according to market strategist Stephen Innes. High financing costs for capital-intensive tech investments have amplified the pullback.
In the SDax of small-caps, Heidelberger Druckmaschinen led losses with a 4.5% drop after reporting a weak first-quarter performance that included lower revenue and operating profit, alongside a wider net loss than a year earlier. The company maintained its full-year guidance despite the shortfall, a stance that failed to reassure investors.
Pharmacy stocks Redcare Pharmacy and DocMorris also lagged after initially rising on first-half results. Swiss online pharmacy Redcare reported strong growth in prescription medications and digital services, narrowing its loss and raising its full-year revenue and adjusted EBITDA guidance ranges.
Defense sector names outperformed, with Renk gaining 3.7% to €51.81 after JPMorgan analyst David Perry highlighted potential takeover interest from larger industry peers. Perry, who set a €75 price target for Renk, cited significant consolidation potential in the sector. Shares of Hensoldt and Vincorion also rose 1.0% and 2.9%, respectively, while Rheinmetall’s stock held steady near recent levels.
