10.10.202516:19:20UTC+00DAX Ends at Over 1-Week Low

The DAX index in Germany experienced further losses, closing approximately 1.5% lower at 24,267 on Friday—its lowest point in over a week—as it pulled back from recent highs. This decline was consistent with trends observed in other European markets. The downturn was influenced by the resurgence of US-China trade tensions, particularly after the announcement of Gaza's peace plan, and subsequent weakness in defense stocks. US President Donald Trump commented that there was no current necessity to meet with China's President Xi Jinping in South Korea in the upcoming fortnight. Furthermore, Trump indicated an intention to increase tariffs on Chinese imports following China's recent extension of export controls on rare earth metals. The political climate in France also continued to be a significant issue of concern. On the corporate front, defense companies Hensoldt and Renk led the decline, with their shares dropping by 4.6% and 3.7%, respectively, while Rheinmetall declined by 1.1%. Additionally, Brenntag shares fell by 5% after UBS downgraded its rating to ‘Sell’ and lowered the price target from €56 to €45, citing a deteriorating outlook. Conversely, Vonovia was among the few stocks to see gains, rising around 1%.