16.12.202514:34:08UTC+00DAX Remains Pressured by Defense Stocks

Frankfurt's index experienced a decline of over 0.5%, dropping below the 24,100 mark on Tuesday afternoon, aligning with a broader downturn observed across most European markets. This was primarily due to ongoing pressure within the defense sector. Companies like Rheinmetall, Hensoldt, and Renk saw their stocks fall by 5.9%, 4.7%, and 3.4% respectively, following the latest discussions in Berlin aimed at resolving the conflict in Ukraine. Negotiators reported progress, particularly concerning security assurances for Ukraine should a ceasefire be reached. Meanwhile, varied labor data from the United States led to speculation about further interest rate cuts by the Federal Reserve. Concurrently, economic indicators pointed to a deterioration in the manufacturing and services sectors within the Eurozone and Germany. Nonetheless, the ZEW institute reported that investor sentiment in Germany improved more than anticipated in December.