DAX Down 1.1%; Rheinmetall Tanks 16%
(RTTNews) - The German stock market's benchmark DAX fell on Wednesday, hurt by a sell-off in defense stock Rheinmetall in particular. Concerns about rising spending in AI infrastructure and uncertainty surrounding an end to the US-Iran conflict amid mixed signals rendered the mood cautious.
The DAX was down 284.05 points or 1.14% at 24,652.98 at noon.
Rheinmetall tanked nearly 16% on reports Germany is reportedly planning to scrap a multi-billion-euro project to build the F126 frigates. The company was expected to become the lead contractor of the F126 frigate program in a deal worth as much as 12.8 billion euros.
Other defense stocks Hensoldt and Renk drifted down by about 3% and 4%, respectively.
RWE, E.ON, Siemens Energy, Mercedes-Benz, Heidelberg Materials, Deutsche Boerse, Daimler Truck Holding and SAP dropped 1%-2.2%.
MTU Aero Engines climbed 4.7%. Brenntag moved up 3.1%, while Symrise, Bayer and Beiersdorf gained 1.9%-2%.
Merck, Zalando, Qiagen, Henkel and Deutsche Telekom gained 1%-1.2%. Continental, Infineon Technologies and Adidas also posted notable gains.
A report from the Ifo Institute showed Germany's Ifo Business Climate Index increased to 85.6 in June, the highest in three months, compared to an upwardly revised 85 in May and in line with market expectations.
The current conditions gauge rose to 87 from 86.1, above forecasts of 86. The expectations index also improved to 84.1 from 83.9, but fell short of expectations of 85.
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