02.03.202617:24:30UTC+00DAX Slumps to 1-Month Lows

Frankfurt’s DAX 40 closed about 2.6% lower at 24,672 on Monday, its weakest level since early February, and lagged behind other major European benchmarks. Investors weighed the potential economic fallout from the conflict in the Middle East, focusing in particular on risks to global energy supply chains and the knock-on effects for worldwide economic stability. These concerns raised the prospect of a renewed bout of inflation, which could jeopardize current expectations for interest rate cuts by the Federal Reserve and the European Central Bank.

Travel and tourism stocks were among the session’s biggest decliners, pressured by flight cancellations to the Middle East and sharply higher oil prices. Lufthansa slid 4.6%, while TUI tumbled nearly 9%. Chemical companies also retreated, with BASF and Brenntag down 2.6% and 2.5%, respectively, weighed in part by rising energy and feedstock costs. The auto sector came under heavy selling pressure as well, led by BMW (-4.5%), Volkswagen (-4%), and Mercedes-Benz Group (-3.8%). Retail names likewise struggled, with Zalando losing 4.4% and Adidas falling 4%.