FRANKFURT (dpa-AFX) - The German stock market remains under pressure on Tuesday, as renewed tariff concerns from the weekend continue to take their toll. For the DAX, which slipped back below the key 25,000-point mark at the start of the week, the correction from its previous record run is ongoing.
The German benchmark index dropped 0.8 percent in the opening minutes of trading to around 24,750 points. Last week, it had reached a record high of 25,507 points. The MDAX of mid-cap stocks fell by 1.2 percent on Tuesday to 31,021 points, while the Eurozone’s leading index, the EuroStoxx 50, posted a more moderate loss of 0.6 percent. It too had set records the previous week.
US President Donald Trump dampened European investors’ spirits over the weekend. Due to the Greenland dispute, he announced punitive tariffs starting in February, which are set to increase again on June 1, unless an agreement is reached for the US to purchase Greenland. Eight European NATO countries, including Germany, are affected by the tariffs.
The escalation of transatlantic tensions and renewed tariff uncertainty have undermined the European investment narrative, wrote Beata Manthey, equity strategist at Citigroup. There is now a cloud over the anticipated earnings recovery for European corporations. As a result, Manthey has withdrawn her preference for Continental European stocks and now rates them as neutral in a global context—for the first time in over a year, she emphasized. With regard to individual sectors, she is particularly skeptical about automotive and chemical companies, where she sees an earnings recovery as especially challenging.
Marina Zavolock of Morgan Stanley struck a more optimistic note. While the new tariff escalation does complicate the overall situation, the impact is highly individual, the investment expert said. Ultimately, Europe will be encouraged in its course toward greater independence and self-reliance, which should provide a boost not only to defense investments but to the reform agenda as a whole.
On Monday, automotive and technology stocks suffered particularly heavily across Europe. The sector index at times fell to its lowest level since October. BMW, Mercedes, and VW also weakened on Tuesday, but remained well above their lows from the previous day.
Meanwhile, FMC shares fell back to their lowest level since autumn 2024. The dialysis company faces headwinds from several directions in 2026, wrote Richard Felton of Goldman Sachs, who withdrew his buy recommendation.
Hypoport shares in the SDAX dropped nearly 11 percent, approaching their interim low from November. At the financial services provider, demand for real estate loans declined slightly in the fourth quarter after a previously strong year./ag/jha/
