DAX Down Nearly 0.5%

(RTTNews) - German stocks are down in negative territory Wednesday morning, with shares from the auto sector losing ground, as worries about a trade war continue to weigh on sentiment despite the U.S. government agreeing to delay the imposition of new tariffs on Mexico and Canada by 30 days.

Investors are focusing on earnings and await fresh data from the U.S. and major European economies for directional clues.

The benchmark DAX was down 103.50 points or 0.48% at 21,407.34, about 20 points off the session's low.

The yield on Germany's 10-year Bund dropped to around 2.36%, the lowest level in about a month, amid concerns new tariffs by US could lead to deflationary pressures and result in further monetary easing by the European Central Bank.

Continental, Daimler Truck Holding and Porsche are down 1.9 to 2%. Bayer, Volkswagen, Symrise, Sartorius, Mercedes-Benz, Fresenius Medical Care, Siemens and Adidas are lower by 1 to 1.6%.

MTU Aero Engines, BMW, Beiersdorf, Brenntag, Zlando, Henkel and Munich RE are modestly lower.

Siemens Energy is gaining nearly 2%. Vonovia is up 1.7% and Commerzbank is rising 0.7%.

On the economic front, the HCOB Germany Composite PMI was revised up to 50.5 in January 2025 from a preliminary reading of 50.1 and 48.0 in December, marking its first expansion in seven months.

Services sector expanded in January, with the PMI reading coming in at 52.5, while the manufacturing sector contracted at a slower pace, with the PMI score coming in at 45.0.

The HCOB Eurozone Composite PMI rose to 50.2 in January of 2025 from 49.6 in the previous month, in line with the preliminary estimate and ahead of expectations of 49.7.

The services sector PMI came in at 51.3 for January, down from 51.6 in December 2024, while the manufacturing sector PMI score came in at 46.6, compared to 45.1 in December.