DAX Falls 1.3% Amid War Worries and Weak Data

DAX Futures Updates

The German market experienced a significant decline on Monday, influenced by heightened tensions in the Middle East and the release of data indicating an unforeseen decrease in industrial production for January. A significant decline in factory orders, coupled with concerns over inflation stemming from rising oil prices, negatively impacts sentiment. Tensions in the Gulf intensified after reports emerged of explosions at Al Udeid Air Base, the largest United States military facility in the Middle East.

Bahrain’s state oil company has invoked force majeure on its shipments following Iranian strikes in the region that ignited the largest oil facility. The benchmark DAX declined to an 11-month low of 22,918.19 before regaining some ground. At 23,245.15, the index experienced a decline of 302.32 points, reflecting a decrease of 1.28% earlier today. Among the benchmark’s components, only Hannover Rueck and Munich RE are currently in positive territory, albeit with marginal gains.

  • Continental has experienced a decline of 5.5%.
  • Siemens Energy, Infineon Technologies, and Siemens have experienced declines of 4.7%, 4.4%, and 4.1%, respectively.
  • MTU Aero Engines, Vonovia, Daimler Truck Holding, Commerzbank, Heidelberg Materials, Brenntag, Deutsche Bank, Adidas, E.ON, BASF, Merck, and Qiagen have experienced declines in the range of 2% to 4%.
  • Volkswagen, BMW, Deutsche Post, Bayer, Fresenius, Zalando, Porsche Automobil Holding, Fresenius, Henkel, Allianz, and Mercedes-Benz are all experiencing a decline.

Data indicated that industrial production in Germany experienced a decline of 0.5% in January, subsequent to a 1% reduction in December. Output was anticipated to increase by 1%. Simultaneously, factory orders experienced a significant decline of 11.1% in January, negating the previous month’s growth of 6.4%. Forecasts indicated a moderate decline of 4.2%.

Excluding energy and construction, industrial production experienced a decline of 2.5% in January relative to December. In a year-over-year comparison, industrial production experienced a decline of 1.2%, subsequent to a 0.4% increase recorded in December. Concurrently, the annual growth rate in orders moderated to 3.7%, down from 11.7%.