Frankfurt's DAX 40 fell nearly 3% on Monday, slipping below the 23,000 mark to its lowest level since April 2025 and extending the previous week’s losses. The benchmark tracked other major European indices lower as escalating tensions in the Middle East and a sharp rise in oil prices fueled concern about a prolonged energy crisis and a potential global inflation shock.
At the same time, traders sharply increased their expectations for further tightening by the European Central Bank, now pricing in two 25-basis-point rate hikes this year, compared with just one as recently as Friday.
Selling pressure was broad-based, with all sectors in negative territory, led by industrials, technology names, and banks. Airline stocks were particularly weak, with Deutsche Lufthansa down 6.5%. Among industrial and technology heavyweights, Siemens Energy, Continental, MTU Aero Engines, Airbus, Infineon Technologies, Siemens, and Heidelberg Materials posted declines ranging from 3.8% to 5.4%. In the banking sector, Deutsche Bank and Commerzbank slipped 3.3% and 2.8%, respectively.
