The DAX 40 continued to decline on the first trading day of September, dropping over 1% to approximately 25,980, a level not observed since late July. Rising oil prices and bond yields, coupled with escalating tensions in the Middle East, are exerting pressure on global markets. This situation has heightened concerns regarding a resurgence of inflation, thereby bolstering expectations for potential interest rate increases.

Eurozone inflation rose to 3.3% in August, reaching its peak since September 2023. This marks a consecutive monthly increase, bolstering expectations for a more stringent policy approach from the ECB. Most sectors experienced a decline, with the notable exceptions of utilities and chemical companies. MTU Aero Engines experienced the most significant decline among stocks, falling by 2.7%.

This was closely followed by SAP, Deutsche Bank, BMW, Mercedes-Benz Group, Rheinmetall, Volkswagen, and Vonovia, each of which saw a decrease of over 2%. Merck led the gainers, rising 1.6% following a buy recommendation from HSBC. Symrise advanced 1.4%, buoyed by a buy call from Jefferies and news about the planned sale of its US terpene business to Mutares.