FX.co ★ DAX Underperforms Peers

On Thursday, Frankfurt's DAX 40 index declined by 0.5%, settling at approximately 24,700, underperforming in comparison to its European counterparts. This downturn was primarily due to traders' heightened focus on recent earnings reports and corporate updates. SAP experienced a significant 12% drop, marking the steepest one-day decline since October 2020, as the company reported cloud sales below expectations and provided a reduced revenue forecast for 2026, despite meeting Q4 revenue estimates. Additionally, Deutsche Bank saw its shares fall by 2% even after announcing strong financial results for Q4 2025, which featured substantial year-over-year increases in both pre-tax and net profits. The bank's stock declined amid news that it is under investigation by the Federal Criminal Police regarding allegations of money laundering, following searches conducted at its offices in Frankfurt and Berlin. In parallel, the German government on Wednesday lowered its economic growth forecasts for 2026 and 2027, citing concerns over external challenges and weak domestic dynamics, which continue to hinder the Eurozone's largest economy despite policy measures aimed at boosting economic activity.