The DAX 40 declined approximately 0.5% to roughly 25,300 on Tuesday, reaching its lowest point since July 24 and marking the second consecutive day of losses, primarily driven by the banking sector. This downturn was further exacerbated by elevated global bond yields and increasing oil prices.

Deutsche Bank and Commerzbank experienced declines of 3.2% and 1.2%, respectively, following a cautionary statement from Bank of America CEO Brian Moynihan regarding a potential 10% decrease in third-quarter fees. Attention has also shifted to the US Federal Reserve’s interest rate decision anticipated on Wednesday, with investors expecting a tightening of monetary policy.

Meanwhile, tech stocks, including Infineon Technologies, exhibited weakness following calls from industry leaders to decelerate AI development. Other significant decliners included BASF, which fell by 2%, Daimler Truck with a decrease of 1.6%, Vonovia down by 1.5%, and Brenntag, which saw a decline of 1.3%.