The German benchmark DAX retreated on Tuesday, extending losses from the previous week’s record peak as Brent crude oil prices climbed above $90 per barrel and government bond yields rose sharply. The DAX closed 0.80% lower at 26,128.36 points, pulling further from its recent high of nearly 26,574 points reached last Wednesday.
The broader MDAX slumped 1.60% to 31,839.83, while the Euro Stoxx index fell 1%. In the U.S., the Dow Jones Industrial Average declined by 0.5% and the Nasdaq 100 dropped 1.7%, reflecting a broad retreat in risk assets.
Oil prices remained a key driver, with Brent crude oil futures rising above $90 per barrel, a level not seen in recent sessions. Analysts cited concerns over supply tightness and geopolitical risks, including the unresolved status of the Iran conflict. U.S. President Donald Trump stated on Truth Social that “currently neither talks are taking place nor are any planned,” underscoring the lack of diplomatic progress.
Bond markets also weighed on equities, with long-term government bond yields climbing significantly. The rise in yields reduced the relative attractiveness of equities, particularly for income-focused investors.
Among individual stocks, Siemens Energy shares fell 5.2% after a period of volatility. Asta Energy Solutions, a newcomer to the SDax, surged 7.3% after raising its profit forecast from a four-month low. 1&1 jumped more than 8% following news that parent company United Internet, led by CEO Ralph Dommermuth, placed a purchase order for up to 6 million 1&1 shares.
Tool manufacturer Einhell reported semi-annual results that met full-year guidance but disappointed on sales and pre-tax profit, which Warburg analyst Philipp Kaiser noted fell “just below his forecasts.” Shares of Einhell slid nearly 6%. Lanxess dropped 3.7% after being downgraded to “Underperform” by Berenberg.
Schott Pharma gained 2.6% after Barclays Bank highlighted a potential trend reversal for the specialty pharmaceutical group, which has faced three years of declining profit forecasts.
The market’s retreat followed a strong start to the week, with the DAX having briefly approached record territory before succumbing to renewed pressure from rising commodity costs and higher borrowing costs.
