FX.co ★ DAX Ends on Negative Note

On Monday, the DAX in Frankfurt experienced a slight decline, closing approximately 0.4% lower at 24,273. This downturn reversed the previous session's gains, which were driven by optimism regarding a potential resumption of the Federal Reserve's rate-easing cycle. However, market sentiment shifted to a more cautious stance due to political developments in France and the anticipation of inflation data from several major European countries. French Prime Minister François Bayrou announced plans to seek a parliamentary confidence vote on September 8, aiming to secure support for the government's proposal to reduce spending by over €40 billion. Domestically, Germany's Ifo Business Climate Index showed an improvement, rising to 89 in August from 88.6 in July, marking the highest level since May 2024 and exceeding forecasts of 88.6. In the corporate sector, notable decliners included Merck, Brenntag, Bayer, and BASF, with respective decreases of 1.9%, 1.6%, 1.6%, and 1.5%. A standout performer was Puma, whose shares skyrocketed by 16% following reports that the Pinault family is considering purchasing the company.