DAX Drops Amidst Trade Tariff Uncertainty

(RTTNews) - Weak sentiment prevails in the German stock market as traders evaluated the potential turbulence in the trade tariff environment following the U.S. Supreme Court's ruling and the fresh temporary levy of 15 percent imposed by the Trump regime. Sentiment remained downbeat despite Ifo data showing signs of recovery in Europe's largest economy.

Data released earlier in the day showed Germany's Ifo Business Climate Index rising to 88.6 in February from 87.6 in January. The highest level since August 2025 also surpassed market expectations of 88.4.

The DAX benchmark that tracks the performance of the 40 largest companies listed on the Frankfurt Stock Exchange has shed 0.48 percent to trade at 25,126.61 versus 25,246.80 at the previous close. The day's trading ranged between a high of 25,195.37 and a low of 25,068.81. At current levels, the index has gained 12.7 percent over the past year. The index had touched an all-time high of 25,507.79 on January 13.

In the 40-scrip index, 16 scrips are trading in the overnight green zone. Commerzbank topped with gains of 1.7 percent. adidas followed with gains of close to 1 percent.

Rheinmetall led losses with a decline of 2.4 percent followed by SAP that lost 2.1 percent. Bayer, Airbus, Zalando, Continental, BMW, have all declined more than 1 percent.

The dollar has weakened following the fresh bout of uncertainty regarding trade tariffs by the U.S., dragging the six-currency Dollar Index to 97.60 from 97.80 on Friday. The EUR/USD pair has rallied 0.15 percent to 1.1800 after ranging between 1.1835 and 1.1791. The EUR/GBP pair is trading 0.02 percent lower at 0.8736. The EUR/JPY pair is trading flat at 182.70.

Amidst a broadly softening trend in global bond markets, ten-year German bond yields have declined 0.12 percent overnight to 2.7356 percent. The yield which was at 2.7390 percent at the previous close ranged between 2.7396 percent and 2.7275 percent in the day's trading.