German Stocks Dip On Oil Spike And Rising Geopolitical Tensions

(RTTNews) - German stocks dropped on Tuesday, hurt by higher oil prices and rising bond yields amid persisting concerns over geopolitical tensions. Investors also looked ahead to the upcoming monetary policy meetings of the Federal Reserve, the Bank of England and the Bank of Japan.

Oil prices moved up sharply amid supply concerns after Saudi Arabia closed a critical pipeline that bypasses the Strait of Hormuz following a drone attack.

Additionally, a highly anticipated meeting in Oman between Iran and Gulf States was postponed at the last minute in the absence of conditions conducive to a constructive dialogue.

Brent crude futures jumped to around $108.25 a barrel, gaining nearly 2.5%.

The yield on Germany's 10-year bond rose to 3.583% today before dropping to around 3.550%.

The benchmark DAX, which tumbled to 25,169.82 earlier, recovered much of the lost ground subsequently and was down 44.44 points or 0.17% at 25,370.62 about a quarter past noon.

Deutsche Bank slid 2.6% and Brenntag dropped about 2.3%. Vonovia, Daimler Truck Holding, BASF and Deutsche Boerse drifted down 1.5%-1.7%.

SAP, Beiersdorf, Mercedes-Benz, Siemens, Henkel, Heidelberg Materials, Deutsche Post, Merck and Fresenius lost 0.6%-1.2%.

Rheinmetall climbed 3.1%. MTU Aero Engines advanced 1.5%. Fresenius Medical Care, Symrise, BMW, Hannover RE, RWE and Infineon Technologies gained 0.4%-0.9%.

Data from the federal statistical office Destatis showed Germany's wholesale prices increased 6.8% year-on-year in August, accelerating from a 5.3% rise in the previous month and marking the 21st consecutive month of increase. On a monthly basis, wholesale prices rose 0.9%, accelerating from a 0.2% gain in July, marking the fastest pace in four months and surpassing market expectations of 0.1%.

A report from the Centre for European Economic Research (ZEW) said Germany's ZEW Indicator of Economic Sentiment edged up to 34.7 in September 2026, its highest level since February, but fell short of market expectations of 37. The assessment of current conditions also improved markedly, surging 14 points to -47.1, its highest level since June 2023.