DAX Retreats as Tech Selloff Spreads and Defense Stocks Slump on Peace Hope

The DAX opened lower on Wednesday, under pressure following a global tech-led selloff. Risk sentiment remained fragile ahead of key economic data and US central bank commentary later in the week.

Markets tracked overnight declines on Wall Street, where technology shares led losses as investors turned more cautious ahead of the release of the FOMC minutes and the Jackson Hole Symposium in the US. The selloff reflected concerns about overextended valuations, as investors moved to profit-taking after a period of strong and rapid gains.

The pullback in defense stocks contributed to broader market weakness, with Rheinmetall and peers retreating as signs of easing tensions between Russia and Ukraine emerged. Further diplomatic progress may continue to pressure defense equities and weigh on the DAX, while any setback in negotiations could trigger a rebound in the sector.

Looking ahead, attention turns to macroeconomic developments. PMI data for Germany and the eurozone, due Thursday, is expected to show some deterioration, which could weigh on the market. Additionally, investors will closely monitor the Jackson Hole symposium, where Fed Chair Jerome Powell is scheduled to speak on Friday. While dovish signals could support equities, a more cautious tone may drive flows back toward bonds.

The post DAX Retreats as Tech Selloff Spreads and Defense Stocks Slump on Peace Hope appeared first on European Business & Finance Magazine.