Dax Facing Stress as US Interest Rate Decision Looms
European Markets Close Mixed as Global Trends Persist
The European stock market closed with a mix of gains and losses on Tuesday, as global trends continued to shape the market's direction.
The DAX, Germany's blue-chip index, fell by 1.77 percent, ending the day at 23,329.24 points. The EuroStoxx 50 followed suit, closing 1.25 percent lower at 5,372.31 points. In contrast, the Dow Jones Industrial closed around 0.4 percent lower during European trading hours, while the S&P 500 and the Nasdaq 100 set new records during the same period.
The MDAX of mid-sized companies dropped 1.21 percent to 30,100.16 points. Finance stocks were the most avoided sector, with investors showing caution in this area.
In individual company news, shares of Beiersdorf temporarily fell to their lowest level in over three years. However, Thyssenkrupp's shares turned a morning loss of up to six percent into a gain of 4.4 percent, due to buying interest in the steel business. Jindal's non-binding offer to buy Thyssenkrupp's steel subsidiary Steel Europa caused Thyssenkrupp's shares to soar.
Schaeffler set new intermediate-term targets, aiming to double its operating result in the coming years and also improve revenue and cash flow. JPMorgan analyst Jose Asumendi described Schaeffler's targets as ambitious, but balanced.
Puma's shares rose a further 2.9 percent, following speculation about a possible merger with Adidas. However, Adidas fell 1.4 percent due to the speculation about a possible merger with Puma.
ProSiebenSat.1 cut its annual forecast, following its recent takeover by the Italian Media for Europe (MFE). Initially, ProSiebenSat.1 gained in share price, but then fell by 2.5 percent, due to the lack of recovery in the advertising market.
Elsewhere, some investors consider a larger rate cut of 0.5 percentage points possible, as they expect the U.S. Federal Reserve (Fed) to cut its key interest rate for the first time this year. However, the search results do not provide specific company names that the U.S. Federal Reserve expects to be part of a continuous rate-cutting cycle. They mainly discuss general economic conditions, Fed interest rate decisions, and market expectations without naming individual companies.
In the tech sector, Siltronic's shares surged 10.4 percent in the SDax index, due to long-term growth potential in new broadband memory chips for applications around artificial intelligence (AI). Atoss Software gained 3 percent, due to a buy recommendation by private bank Metzler.
Outside Europe, both the Swiss SMI and the British FTSE 100 fell by around one percent, mirroring the mixed performance in Europe.
As the global economic landscape continues to evolve, investors will closely watch how these trends impact European markets in the coming days and weeks.
