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DAX falls 1.18% as geopolitical worries weigh on German stocks

DAX falls 1.18% as geopolitical worries weigh on German stocks

Germany’s DAX fell 1.18% to 25,319.77 points on Monday, ending a short recovery.

The mid-cap MDAX also fell, while the eurozone’s EuroStoxx 50 lost 0.96%.

Traders pointed to uncertainty over the Middle East and caution ahead of quarterly results from companies including SAP, Tesla and Meta.

The DAX briefly dropped below 25,200 points before closing just above its short-term trend line.

Market expert Andreas Lipkow said strong company profits and controlled inflation were helping keep markets stable, but a loss of either support could lead to a wider downturn.

Investors will watch this week’s company results for signs of how firms are performing.

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Andreas LipkowMarket expert at CMC Markets
While German blue chips had shown relative resilience to the sell-off in the US technology sector in recent trading days, that relative strength came under pressure today
via cash.ch
As long as company earnings remain convincing and inflation does not get out of control again, the market structure will remain reasonably stable. But if either of these two supports breaks down, the current nervousness could quickly turn into a much broader correction
via cash.ch