The benchmark DAX experienced a decline of 203.32 points, reflecting a decrease of 0.84%, settling at 24,171.96. On Tuesday, German equties have entered negative territory, influenced by uncertainty surrounding U.S.-China trade relations, alongside data indicating a rise in German consumer price inflation. Investors are anticipating significant earnings reports from major U.S. banking institutions. U.S. Treasury Secretary Scott Bessent expressed his continued expectation for a meeting between Presidents Donald Trump and Xi Jinping, while cautioning that all options are available for responding to China’s recent decision to tighten exports of rare earths.

China’s commerce ministry indicated its willingness to engage in discussions; however, it emphasized that the U.S. cannot pursue dialogue while simultaneously issuing threats of new measures. Beijing has reportedly indicated that the expansion of restrictions on Chinese firms by Washington in late September heightened tensions and prompted it to further tighten its control over critical minerals. Siemens Energy has experienced a decline of approximately 4.5%, while Continental has seen a decrease of 4.1%. Rheinmetall has experienced a decline of 3.4%, while Siemens has seen a decrease of 3.1%. MTU Aero Engines is experiencing a decline of 1.7%, whereas Brenntag, GEA Group, BASF, Infineon Technologies, Siemens Healthineers, Merck, and Deutsche Bank are all down between 0.8% and 1.2%.

Zalando is experiencing an increase of nearly 3%. Volkswagen and Vonovia are both experiencing an increase of 1.7%. Deutsche Telekom has experienced an increase of over 1% following the announcement of a significant partnership with Comcast Technology Solutions. Beiersdorf and Fresenius have both experienced an increase exceeding 1%. Heidelberg Materials, E.ON, Qiagen, and Porsche Automobil Holding have experienced slight increases in their valuations. Data indicated that Germany’s consumer price inflation experienced an uptick for the second consecutive month in September, rising by 2.4% year-on-year after a 2.2% increase in August. Headline inflation recorded its highest level since December, peaking at 2.6%.

Inflation, as indicated by the EU measure of the harmonized index of consumer prices or HICP, experienced a notable increase to 2.4%, in line with estimates, up from 2.1% in August. The HICP inflation reached its peak since February, recording a rate of 2.6%. Core inflation, excluding food and energy prices, increased to 2.8% from 2.7%. In September, both the CPI and HICP experienced a month-on-month increase of 0.2%, following a 0.1% rise in August, in line with the preliminary estimates.