DAX Slumps to New Low Amid Oil Price Surge and Renewed Inflation Fears
The DAX 40 index slid to its lowest level in over a month as market concerns intensified due to rising oil prices and bond yields amid Middle East hostilities.
Renewed inflation worries fueled expectations of interest-rate hikes, further weighing on markets worldwide. In the Eurozone, inflation reached 3.3% in August, its highest since September 2023, solidifying the likelihood of a tighter ECB policy stance.
The DAX extended initial losses to over 1%, dipping to around 25,980, a level last seen in late July. Most sectors traded lower, with utilities and chemical companies being exceptions.
Major stocks suffered significant losses, led by MTU Aero Engines' 2.7% decline, followed by SAP, Deutsche Bank, BMW, Mercedes-Benz Group, Rheinmetall, Volkswagen, and Vonovia, each down over 2%. On the upside, Merck rose 1.6% after a buy recommendation from HSBC.
Symrise advanced 1.4%, buoyed by a buy call from Jefferies and news about the planned sale of its US terpene business to Mutares.