German equities opened lower Tuesday, with the DAX falling 0.7% to 25,260 — its lowest level in over seven weeks — while the MDAX dropped 0.6% to 30,859 and the EuroStoxx 50 declined 0.9%.
Market analyst Thomas Altmann of QC Partners said equity markets were struggling to find footing. "Rising energy prices and rising interest rates form a vicious circle that burdens the future outlook for stocks in several ways," he said.
Oil prices held near recent highs overnight. Michael Pfister, a forex expert at Commerzbank, wrote that Houthi advances in the Yemen region had raised the possibility of Brent crude testing $110 per barrel, drawing attention to the US Federal Reserve's rate decision expected Wednesday, with investors pricing in further monetary tightening.
Concerns about the pace of AI development also continued to weigh on sentiment. Following a broad sell-off driven by fears of slowing progress in the AI sector, rallies in AI and semiconductor stocks in Asia failed to materialize, underscoring lingering doubts about the technology sector.
Among single-stock developments, photo-services provider CEWE said it would buy back up to 150,000 of its own shares worth up to €18 million — roughly 2% of the company's share capital — and saw its stock rise 3.2%, topping the SDAX.
Engine manufacturer Deutz announced a capital increase raising approximately €179 million from the issuance of over 15.26 million new shares. Management said the proceeds would strengthen financial flexibility for future growth opportunities, but the stock fell 4.8%.
Schott Pharma gained 2.4% after JPMorgan initiated coverage with an "Overweight" rating. Analyst Philip Omnou highlighted the company's leading market position in the storage and delivery of injectable medications, structurally favorable trends, and a projected earnings growth rate of 14% annually through 2029.
Specialty chemicals group Evonik dropped 2.7% after Morgan Stanley downgraded its shares from "Overweight" to "Equal-weight."
