FX.co ★ DAX Dips Further

The DAX 40 extended losses to more than 2% on Wednesday, sliding to its lowest level in over a week amid rising geopolitical tensions. At the NATO summit, President Trump stated that he considers the US-Iran memorandum of understanding to be "over" and described negotiations with Tehran as a waste of time. His comments heightened fears of renewed military confrontation and potential disruptions to oil supplies through the Strait of Hormuz, stoking inflation concerns and reinforcing expectations of further ECB interest rate hikes. Market sentiment was already fragile after fresh exchanges of attacks between the two countries and Washington’s decision to reimpose sanctions on Iran’s oil sector following alleged attacks on three ships in the Strait of Hormuz. At the same time, investors continued to pare back positions in semiconductor and AI-related stocks amid mounting worries about stretched valuations. Losses were broad-based, led by banks, automakers, software and technology, industrials, and consumer discretionary shares, while utilities stood out as the only sector in positive territory.