Stock market index DAX experiences a significant drop due to ongoing struggles of Wirecard, a German financial technology firm.
DAX Suffers Late-Week Slump Amid Global Tariff Uncertainties
The German stock market experienced a turbulent end to the week, with the DAX closing at 12,089.41 points, down 0.73 percent from the previous day's close. The weak trading volumes and cautious investor sentiment, driven by macroeconomic concerns, contributed to the DAX's weakened state.
The lingering global tariff uncertainties, particularly the impact of Trump-era tariffs on German industries, particularly autos and technology, created a volatile and low-liquidity trading environment. This pushed investors towards defensive strategies and hedging.
Among all stocks, Wirecard had the most significant loss, with shares experiencing a loss of over 64 percent at the close of trading. Daimler and Adidas stocks also had losses, while BMW shares had losses of over 1.5 percent. On the other hand, RWE shares had gains of over 1 percent, and Linde shares also experienced losses.
Vonovia shares had gains of over two percent at the close of trading, and Thyssenkrupp shares also performed well, closing with gains. Beiersdorf and SAP shares also performed well, closing with gains. However, the precise performance for the week isn't detailed for these stocks.
SAP remains a significant tech holding in the DAX, with about 14.49% portfolio weight. Although the tech sector has been hit by tariffs and supply chain shifts, the exact performance for the week isn't detailed in the sources. Deutsche Bank, which holds roughly 3.02% weight in the DAX, was also affected by global economic uncertainty, but the exact weekly performance is not specified.
The European common currency also weakened slightly on Friday afternoon. The weak performance of the U.S. stock market is attributed to the DAX's weakened state at the end of the week. The German stock market as a whole showed a mixed performance.
[1] Source: Reuters [2] Source: CNBC [3] Source: MarketWatch [4] Source: Bloomberg [5] Source: DAX Index Composition Data, as of August 2025
Despite the volatile trading environment in the banking-and-insurance sector due to the lingering global tariff uncertainties, some stocks like Vonovia, Thyssenkrupp, Beiersdorf, and SAP managed to perform well. However, in the finance and technology industry sectors, such as SAP and Deutsche Bank, the exact weekly performance was not specified due to uncertainties and shifting economic conditions.
