The German benchmark DAX fell 0.34% to 26,002 points in the first hour of trading, extending recent modest declines as the 26,000 mark remained under pressure.
The MDax of mid-cap stocks and the Euro Stoxx 50 were little changed, with the DAX’s recent record high of 26,573 points from the prior week now appearing out of reach. Sentiment was dampened by higher oil prices amid escalating tensions in Iran and rising government bond yields, though a late-day easing in the bond market provided some support.
The U.S. Treasury’s announcement of increased buybacks of long-dated bonds helped stabilize yields, lending modest support to equities. However, gains were capped by ongoing macroeconomic headwinds.
Shares of Tonies, the audiobook and toy company, slumped 4.6% in the SDax after an initial advance, despite reporting a 15% revenue increase in the first half and reaffirming full-year targets. Adjusted EBITDA exceeded consensus estimates, according to Metzler, but the market focused on a 20% drop in key profit metrics due to product mix effects and new U.S. tariffs.
Analyst actions drove notable moves. Sartorius surged 5.1% after UBS upgraded the stock to buy, citing its premium growth profile and lifting revenue and earnings forecasts through 2031 by an average of 3%. In the DAX, Continental advanced 1.8% after JPMorgan upgraded the stock and Michelin to overweight, citing strong profitability in the tire sector and adjusting estimates based on recent sales data.
Brenntag fell 3% to around €60 as Bank of America resumed coverage with an underperform rating and a €55 price target, arguing that extraordinary wartime profits would normalize and savings initiatives would not offset the decline. Ströer dropped 2.8% after Kepler Cheuvreux withdrew its buy recommendation, citing a lack of near-term catalysts beyond a potential bid from financial investors, following reports that Blackstone had withdrawn interest in May.
European markets remained sensitive to energy costs and bond market dynamics, with the DAX’s consolidation persisting as investors await clearer macroeconomic signals.
