Rising oil prices weighed on German equities on Tuesday, with the DAX down 0.4% by midday to 25,916 points. A 159-liter barrel of Brent crude, the North Sea benchmark, approached the $100 mark, while WTI crude and European natural gas prices also advanced. Traders cited attacks by Yemen's Houthi militia on Saudi Arabia as one factor behind the further gains. Saudi Arabia, the Gulf region's largest oil producer, halted production at some facilities near the Yemen border.
Jürgen Molnar of Robomarkets said the ongoing Middle East conflict was keeping inflation concerns alive and that higher interest rates for longer remained priced in. He described the oil price as the thermometer for equity markets.
The MDAX index of mid-cap shares was modestly higher at 32,425 points, while the Euro Stoxx 50 fell 0.2%. In individual shares, Fresenius led DAX gainers, up 4.3%, after UBS said the healthcare company's shares had almost 30% upside potential and maintained a buy recommendation. Infineon lost almost 4% after Morgan Stanley downgraded the chipmaker, saying it saw little near-term upside for market expectations.
Citigroup buy recommendations supported Kion and Nordex, which rose almost 7% and 1.6%, respectively. Kion was the biggest MDAX gainer. DWS shares gained 1.5% after Jefferies issued a buy recommendation; the asset manager's stock is up about 36% year to date. In the SDAX, Hornbach Holding jumped 6% to its highest level since the end of last year, after the home-improvement retailer reported robust demand in its second business quarter.
