DAX closes about 1.2% lower after Germany inflation accelerates
Germany’s inflation prelim rose to 2.9% in August from 2.8% in July, below 3.1% expected. DAX 40 closed about 1.2% down at 26,282.4, snapping a four-day advance amid Middle East tensions and higher-rate prospects.
The DAX 40 extended losses to close about 1.2% down at 26,282.4 on Monday, snapping a four-day advance and lagging behind its European peers.
Most sectors traded lower, led by industrials, technology and financials.
Market sentiment was pressured by the renewed escalation of tensions in the Middle East.and the prospect of higher interest rates.
On the data front, preliminary figures showed Inflation in Germany rose to 2.9%,in August, a fresh acceleration from July's 2.8% but below the expected 3.1%..Inflation in the bloc is expected to come in at 3.3% in August, up from 2.9% in the previous month, potentially adding pressure on the ECB to tighten policy later this month.
Siemens Energy was the biggest laggard, dropping 5%, followed by Rheinmetall, Vonovia, Heidelberg Materials, Airbus and MTU Aero Engines, with losses between 1.9%-3.4%.
On the upside, top performers included Continental /2.4%), Zalando (2%) and Brenntag (2%).
For the month, the index advanced 2.5%.