Stock Market Dive: Grim Prospects Await with DAX Decline

Week Ending with a Red Mark for the German Index

Well, the DAX took a hit this week, losing 1.2 percent and settling at a dismal 22,399 points. The Euro Stoxx 50 wasn't far behind, losing 1.1 percent at 5,319 points.

The U.S. announcing import tariffs on cars and car parts was a major blow to the German index yesterday. The DAX failed to hold ground and lost the battle for the 21-day line, a trend indicator. Portfolio manager Thomas Altmann of wealth manager QC Partners sees the index in a tumultuous sideways market, searching for direction. "This is a market where sentiment can swing from one extreme to another due to political shifts," Altmann said, commenting on the impact of U.S. trade policy.

Experts at Landesbank Helaba see a dramatic shift in investor sentiment. The risk of further correction has surged, but the overall upward trend remains intact. "Given the chaos created by the U.S. President Donald Trump, the DAX is holding up surprisingly well," says analyst Jochen Stanzl of broker CMC Markets.

Stocks under the Crosshairs: Siemens Energy and Commerzbank

The two stocks bearing the brunt of the blow today are Commerzbank and Siemens Energy. The former saw a loss of around five percent, while Siemens Energy recorded a loss of about six percent. Deutsche Bank’s stock also saw a loss of 3.55 percent.

Before the weekend, the sector's poor performance led to further profit-taking. James von Moltke, Deutsche Bank's CFO, ending his contract in June 2026 left investors surprised, according to JPMorgan sector analyst Kian Abouhossein. However, he noted that von Moltke, along with CEO Christian Sewing, have achieved a remarkable turnaround in the company over the past years. Sewing's contract extension until 2029 was also welcomed.

Siemens Energy's share price also took a hit without any company-specific negative news. The unstable market conditions, trade tensions like new U.S. tariffs, and the overall gloomy investor sentiment could have contributed to the drop. In this volatile environment, investors are shedding their holdings in cyclical stocks rapidly. The general "AI fatigue" in the market could also affect tech-savvy energy stocks like Siemens Energy.

The best performer in the DAX currently is Symrise, up 2.7 percent. JPMorgan has maintained its "Overweight" rating and €120 price target ahead of its first-quarter results at the end of April. Analyst Edward Hockin expects a moderate start to the year for the aroma and fragrance manufacturer but anticipates accelerating growth in the second half.

Reflecting data from dpa-AFX

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In the tumultuous market, portfolio manager Thomas Altmann suggests a market where sentiment fluctuates widely due to political shifts, as seen in the DAX's battle with the U.S. trade policy.
Siemens Energy and Commerzbank stocks have been adversely affected this week, bearing the brunt of the market's downturn, with losses of 6% and 5% respectively.
The current volatility in the market with unstable conditions, trade tensions, and overall negative investor sentiment seems to have contributed to the drop in Siemens Energy's share price, despite no company-specific negative news.
Despite the current concerns, one stock showing resilience is Symrise, with a 2.7% increase. JPMorgan maintains its "Overweight" rating and €120 price target for Symrise ahead of its first-quarter results in April.
With the ongoing market uncertainty, it's essential to keep a close eye on sectors like defense, infrastructure, and personal-finance technology for potential upward trends in the near future.

Stock Market Dive: Grim Prospects Await with DAX Decline