DAX Slides: Siemens & SAP Drag Down German Stocks
Economy / Finance

DAX Slides: Siemens & SAP Drag Down German Stocks

While the index held steady with fluctuations earlier in the day, afternoon trading saw a decline

Market analysts point to recent US labor market data as a key driver of market sentiment Jochen Stanzl, Chief Market Analyst at CMC Markets, noted that the figures suggest a potential shift in US Federal Reserve policy Despite earlier job creation numbers, adjusted data indicates minimal employment growth since May, prompting speculation that the Fed may consider a more aggressive approach to interest rate reductions

While a 50 basis point cut in the next Fed meeting remains unlikely, the possibility is gaining traction as the central bank faces pressure to respond to a softening labor market Stanzl emphasized that positive economic data would alleviate recessionary concerns and create a favorable environment for equities, a message that appears to be resonating with investors who are increasingly positioning themselves for potential rate adjustments

Within the DAX, Vonovia and Sartorius led the gainers, while Siemens, SAP and Siemens Energy were among the weakest performers

Commodity markets also saw movement, with Brent crude oil falling sharply to $6518 a barrel, a decrease of 27 percent The Euro strengthened against the dollar, trading at $11744, with the dollar worth 08515 Euro