The German benchmark index slipped in early trade on Wednesday as investors adopted a cautious stance ahead of key U.S. inflation data and Nvidia’s quarterly results due after the New York close.
The DAX fell 0.12% to 26,234 points, remaining below its recent record high of 26,574. The MDAX of mid-cap stocks rose 0.12% to 32,305, while the Euro Stoxx 50 edged into positive territory. Declining oil prices eased inflation concerns and lent support to equities, though losses in SAP tempered gains.
SAP shares dropped 3.6% after UBS downgraded the software giant, citing valuation concerns despite acknowledging the stock’s reasonable pricing. Analyst Michael Briest noted fragile investor sentiment toward the sector.
E.ON advanced 1.1% after Berenberg upgraded the utility from ‘Hold’ to ‘Buy,’ citing an attractive entry point following a recent correction and highlighting growth prospects in Germany’s power grid.
Qiagen shares rose 1.4% as reports suggested private equity firms EQT and KKR were in talks to acquire the diagnostics company at $50 per share.
Aroundtown, a commercial real estate firm, saw its shares fluctuate after reporting weaker half-year earnings, with higher costs weighing on profitability. The stock last traded 0.7% lower.
Attention remains focused on the U.S. personal consumption expenditures (PCE) price index, due later in the session, which could influence Federal Reserve policy ahead of the Jackson Hole symposium starting Thursday. Nvidia’s results will also be closely watched for fresh cues on artificial intelligence demand and earnings momentum in the chip sector.
Analysts have cautioned that investor expectations for Nvidia may have become overly optimistic, with Deutsche Bank’s Jim Reid observing that the stock has declined in each of the past four earnings releases despite strong results.
