BRUSSELS (dpa-AFX) - Despite opening on a positive note amid easing trade tensions, the German market is down in negative territory Tuesday afternoon, with investors turning cautious, looking ahead to U.S. consumer price inflation data due later in the day. Weak economic sentiment reading is also weighing on sentiment.
The market started off on a firm note as the U.S. extended its pause on higher tariffs for Chinese goods until November 10, averting an immediate escalation in the trade war.
The benchmark DAX, which climbed to 24,163.68 earlier in the session, was down 73.61 points or 0.31% at 23,998.73 a few minutes ago.
Hannover Rueck is declining by about 2.8% despite reporting higher net income and reinsurance revenue in the first half of the year.
SAP is down 2.9%. Munich RE is down 1.5%, while Symrise, Daimler Truck Holding, BASF, Heidelberg Materials and Zalando are down 0.5 to 0.9%.
IT services company Cancom SE is down more than 2.5% after it slipped to loss in the second quarter from profit a year ago.
Sartorius is rising 3.7%, lifted by a rating upgrade by Jefferies. Siemens Energy is gaining about 2.75%. Henkel, Rheinmetall, Qiagen, Merck, Continental and Deutsche Post are up 1 to 1.4%.
In economic news, the ZEW Indicator of Economic Sentiment for Germany decreased for the first time in four months to 34.7 in August 2025, compared to 52.7 in July which was the highest since 2022.
'Financial market experts are disappointed with the announced EU-US trade deal. In August 2025, the ZEW indicator experiences a substantial decline, also due to the poor performance of the German economy in the second quarter of 2025. The outlook has worsened in particular for the chemical and pharmaceutical industries. The mechanical engineering and metal sectors as well as the automotive industry are also severely affected,' ZEW President Professor Achim Wambach said.
The assessment of the current economic situation has also deteriorated, with the Current Conditions index declining to -68.6 from -59.5 and worse than forecasts of -65. source.
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