FX.co ★ DAX Falls to 5-Month Lows

On Tuesday, Germany's DAX Index declined for the fourth consecutive session, dropping by over 1% to approximately 23,250—a level not seen since June. This movement mirrored trends observed across European and global markets. Investor sentiment turned cautious due to escalating concerns over the elevated valuations of AI-related stocks, particularly ahead of Nvidia's impending quarterly earnings release. Additionally, uncertainty looms regarding the Federal Reserve's forthcoming actions, as the extended shutdown has deprived it of comprehensive macroeconomic data, complicating decision-making processes. Nearly every sector experienced a downturn, led by the banking sector, where Deutsche Bank fell by 3.5%. Technology companies, including Infineon Technologies and AI equipment manufacturers like Siemens Energy, also faced declines of approximately 3%. Among the limited number of gainers, Rheinmetall stood out by climbing nearly 4% following its announcement to raise midterm sales guidance.