Germany’s DAX index experienced a downturn, closing approximately 0.6% lower at 24,232 on Tuesday, reaching its lowest point in nearly two weeks. Investors considered the renewed trade tensions between the United States and China, along with the ongoing U.S. government shutdown, while evaluating various corporate developments. In France, Prime Minister Sébastien Lecornu announced the suspension of the pension reform planned for the fall, partially yielding to the demands of the Socialist Party, whose backing is essential for the government’s stability.
In corporate news, German automotive parts manufacturer Continental saw its shares tumble over 4%, mirroring losses in its French counterpart Michelin, which recently reduced its financial guidance. Siemens also faced a decrease, with its stock falling by 3.2%, following a downgrade by Morgan Stanley to “equal-weight” from “overweight.” This was attributed to a sluggish recovery in its Digital Industries division and increasing competition in China. Defense sector companies, including Renk, Hensoldt, and Rheinmetall, were among the notable losers, declining by 3.9%, 3.6%, and 2.2%, respectively. Conversely, Heidelberg Materials gained traction, rising by 2.1%, buoyed by reconstruction plans in Gaza.