On Tuesday, the DAX index in Frankfurt experienced a decline, falling over 1% and reaching its lowest point since August 1st. This movement followed the release of the latest Eurozone inflation data. The annual inflation rate increased to 2.1% in August, up from July's 2%, surpassing the European Central Bank's target and defying predictions of stability. This increase has reinforced expectations that the ECB will maintain current interest rates at their forthcoming meeting.
Additionally, ongoing geopolitical tensions, political uncertainties in France, and concerns over tariffs continue to weigh on investor sentiment. While the EU's trade agreement with the United States has alleviated some tariff-related uncertainties, the 15% broad duty on EU exports remains a potential impediment to economic activity.
The downturn affected nearly all sectors, notably with Fresenius Medical Care plummeting over 5%. Companies such as Siemens, Vonovia, Commerzbank, E.ON, Zalando, and Deutsche Post also reported declines ranging between 1% and 2%. In contrast, defense-related stocks like Rheinmetall, Renk, and Hensoldt saw an approximate increase of 1%.
