DAX Down Sharply At Noon On Rising Geopolitical Tensions

(RTTNews) - German stocks tumbled for a third straight session as the mood remained bearish on Tuesday amid escalating geopolitical tensions and tariff uncertainty. Stocks from across several sectors lost significant ground and the benchmark DAX dropped to a near three-week low.

The United States depoloyed military aircraft to Pituffik Space Base in Greenland, prompting Denmark to rush its Army chief and troops to the Arctic Island in a dramatic escalation of tensions.

On the tariff front, U.S. President Donald Trump threatened to impose 200% tariffs on French wine and Champagne after Paris rejected his invitation to join the proposed Board of Peace initiative aimed at resolving global conflicts. The French government said that it "does not intend to answer favorably."

The DAX, which dropped to a low of 25,544.64, was down 381.30 points or 1.52% at 24,579.03 at noon.

Among DAX components, only Deutsche Bank and Qiagen, up 0.5% and 0.2%, respectively, were up in positive territory.

Siemens Energy tumbled 3.7%. Fresenius, Fresenius Medical Care and Vonovia lost 2.5 to 3%. Bayer, Infineon Technologies and Heidelberg Materials drifted down by a little over 2%.

Zalando, SAP, Porsche Automobil Holding, Volkswagen, Daimler Truck Holding, Siemens, Rheinmetall, GEA Group, RWE, Allianz and Deutsche Bank were also down with notable losses at noon.

In economic news, data from Destatis showed Germany's producer prices decreased 2.5% year-on-year in December, sharper than the 2.3% decline seen in November. Prices were expected to drop 2.4%. Prices have been falling since March.

On a monthly basis, producer prices slid 0.2%, as expected, following a flat reading in November. For the full year 2025, producer prices declined 1.2% compared to a fall of 1.8% registered in 2024.

A report from the European Central Bank said the euro area current account surplus declined sharply in November as the surplus on goods trade decreased and the primary income deficit widened.

The seasonally and working-day-adjusted current account surplus fell to EUR 9.0 billion from EUR 27.0 billion in October. In the same period last year, the surplus totaled EUR 23.0 billion.

The surplus on goods trade shrank to EUR 24 billion from EUR 33 billion in the previous month, and the surplus on services decreased to EUR 12 billion from EUR 13 billion.