04.02.202609:20:25UTC+00DAX 40 Edges Lower Amid Tech Sell-Off

Frankfurt's DAX 40 index experienced a decline of 0.4%, closing at 24,680 on Wednesday. This downturn was primarily driven by a renewed sell-off in technology stocks as investors evaluated the implications of new AI-related tools on conventional business models. Notably, stocks for companies such as Infineon, SAP, and Siemens each decreased by more than 3%. Investor focus was also directed towards corporate earnings, with Infineon announcing robust demand for AI-driven products in its first fiscal quarter and a smaller-than-anticipated reduction in its operating margin. Additionally, investors are highly anticipating Alphabet's earnings report, which will be released after the closing of the US market. In parallel, significant attention is focused on the forthcoming ECB policy decision, expected tomorrow, where it is widely anticipated that interest rates will remain unchanged. Policymakers are considering the deflationary effects of a stronger euro. Meanwhile, geopolitical events also garnered interest: Russian and Ukrainian negotiators are convening in Abu Dhabi to explore a potential resolution to their ongoing conflict, and there are reports that the US military has shot down an Iranian surveillance drone near Iran's southern coastline.