FX.co ★ DAX Closes Lower for 2nd Day

Frankfurt’s DAX 40 trimmed earlier losses to finish about 0.2% lower at 25,402 on Tuesday, logging a second consecutive decline as rising oil prices and elevated bond yields continued to exert pressure on equities. Investor sentiment was also subdued ahead of Wednesday’s Federal Reserve policy decision, with the US central bank widely expected to raise interest rates for the first time in three years in an effort to tackle persistently high inflation.

On the domestic front, Chancellor Friedrich Merz pledged to soon announce measures to curb surging fuel costs, a key issue ahead of a pivotal election in Mecklenburg-Western Pomerania.

Bank shares came under pressure after Bank of America CEO Brian Moynihan signaled a potential 10% decline in third-quarter fee income. Deutsche Bank slipped 2.5%, while Commerzbank lost 0.5%.

In contrast, defense group Rheinmetall climbed 3.2%, supported by ongoing geopolitical tensions and reports of ammunition shortages in the United States. Tech names also fared better, with Infineon Technologies rebounding 0.4%, and AI-related stocks including Siemens Energy and Hochtief advancing as well.