FX.co ★ DAX Turns Negative

On Wednesday afternoon, Frankfurt's DAX index trimmed its earlier gains, settling below 22,350 as traders evaluated mixed economic data and corporate earnings reports from both the US and Europe. In the US, the economy surprisingly contracted in the first quarter, whereas Eurozone GDP growth exceeded analysts' expectations. Notably, Germany emerged from a brief downturn, achieving a 0.2% growth in Q1 following a 0.2% decline in the preceding quarter, aligning with forecasts. Additionally, Germany's inflation rate decreased for the second consecutive month to 2.1% in April, marking the lowest rate since October 2024, albeit slightly exceeding market predictions of 2.0%. In the equities market, Siemens Energy, Zalando, Deutsche Bank, and Commerzbank were among the significant decliners, with losses of 5.5%, 4.9%, and 4% each, respectively. The Mercedes-Benz Group experienced a nearly 3% drop after retracting its 2025 earnings forecast due to a 41% decline in Q1 profits. Similarly, Volkswagen saw a 1.3% decrease after reporting a 37% reduction in first-quarter profits.