DAX tumbles 1.3% as economic uncertainty rattles German heavyweights
The DAX index closed lower on Thursday, with heavyweights Heidelberg Materials, SAP, and Deutsche Börse each dropping around 4%. Despite Deutsche Post and Zalando gaining over 7%, they failed to offset broader losses. Market uncertainties, including economic concerns and inflationary pressures, contributed to the declines.
The DAX index ended the day at 23,734 points, a 1.3% decrease from the previous day. The main culprits behind this downturn were German companies such as Heidelberg Materials, SAP, and Deutsche Börse, each dropping around 4%. The reasons for these negative stock developments are linked to broader market uncertainties. These include economic concerns in Germany and Europe, ongoing inflationary pressures, expectations around central bank monetary policies, and sector-specific challenges like technological transitions and regulatory impacts. No specific event on March 1 was identified as the direct cause.
Early losses in U.S. markets further impacted the DAX index sentiment. Meanwhile, fresh data suggested that trade policy uncertainties may pose fewer problems than initially feared. Interestingly, shares in DHL and Zalando gained over 7%, but this was not enough to offset the broader losses. Investors might have bought these shares due to already priced-in steeper declines rather than optimism.
The DAX index closed lower on Thursday, with heavyweights driving the decline. Despite gains by Deutsche Post and Zalando, broader market uncertainties and economic concerns weighed heavily on the index. The euro strengthened against the dollar, with one euro trading at $1.1538 on Thursday afternoon.
