FX.co ★ DAX Suffers Worst Day in Over a Month

On Tuesday, Germany's DAX index saw a significant downturn, dropping approximately 1.7% to hit a five-month low at 23,173. This represents the sharpest daily decline since October 17. Global market sentiment was adversely affected by concerns over elevated valuations in the tech sector and uncertainty regarding the Federal Reserve's monetary policy. Investors were also on edge ahead of Nvidia's earnings report and critical US economic data expected later in the week. The majority of market sectors experienced losses, with technology firms and banks among the hardest hit. Siemens Energy led the decliners with a fall of 6.4%, followed by Infineon Technologies, which slid 4.1%, and Siemens, which decreased by 2.2%. Financial institutions Commerzbank and Deutsche Bank also struggled, losing 4.3% and 4.1%, respectively. Additionally, automotive stocks and pharmaceutical companies faced considerable pressure. On the brighter side, Deutsche Börse gained 2.8% after announcing plans to integrate Société Générale’s stablecoins into its settlement infrastructure, a significant move towards incorporating stablecoins into the primary financial framework under regulation.