DAX Holds Steady as Rheinmetall and Gea Group Plummet

Rheinmetall

Germany’s equity benchmark DAX exhibited limited movement on Monday, with stocks oscillating between gains and losses in a cautious trading environment, influenced by concerns surrounding the U.S.-Iran conflict amid insufficient advancements in peace negotiations. In response to U.S. President Donald Trump’s dismissal of Iran’s recent proposal aimed at resolving the ongoing conflict, Iran has asserted its intention to persist in employing both ‘the weapon of diplomacy’ and military resistance as deemed necessary to safeguard its national interests.

Esmaeil Baqaei, spokesperson for the Iranian Foreign Ministry, asserted that the United States has violated trust in every diplomatic engagement it has been involved in during the last two decades. The DAX experienced a decline of 0.10 points, settling at 24,307.32 recently.

  • Rheinmetal experienced a decline of 11.8%, continuing its recent downward trend after JP Morgan reduced the stock’s target price by approximately 30%. MTU Aero Engines experienced a decline of 6.7%.
  • Allianz experienced a decline of 5.1%, while Adidas saw a reduction of approximately 5%.
  • Gea Group shares experienced a decline of over 5%, even as the company announced a significant increase in earnings. The company’s bottom line in the first quarter amounted to EUR99.73 million, translating to EUR0.61 per share, in contrast to EUR94.34 million, or EUR0.57 per share, from the previous year.
  • Hannover Re shares experienced a decline of 4.4% following the group’s earnings, which did not meet anticipated levels. Hannover Re’s net income in the first quarter increased by 48%, reaching 710.6 million euros compared to 480.5 million euros in the previous year. Earnings per share increased to 5.89 euros, surpassing the 3.98 euros recorded in the previous year.
  • Henkel, Siemens Energy, Munich RE, Commerzbank, Beiersdorf, Zalando, Daimler Truck Holding, Merck, and Siemens Healthineers experienced notable declines.

BASF experienced an increase of 4.5%. Infineon Technologies experienced an increase of nearly 4%, whereas RWE, Brenntag, and Porsche Automobil Holding saw gains ranging from 0.8% to 1.1%. E.ON recorded a rise of 0.5%. Copper producer Aurubis experienced an increase of approximately 2.3% following the announcement of enhanced performance in the second quarter and an upward revision of its forecast for 2025-26.