DAX gives up profits: US-Iranian talks and stock exchanges in focus

For the first time in months, the USA and Iran are talking directly to each other again. Further discussions are to follow a meeting on the sidelines of the UN General Assembly in New York. This gave the DAX a tailwind at the start of trading. The leading German index started half a percent higher, but then gave up its gains and is now just slightly in the red.

The current purchasing managers' indices from S&P Global signal the strongest economic growth in the euro zone since April 2023.

Jochen Stanzl, chief market analyst at Consorsbank, pointed out the current reluctance of international investors: "The political uncertainty in Germany is currently causing international investors to steer clear of German stocks." They demand certainty that political stability can be maintained at the federal level after the ruling parties at the state level suffered bitter electoral defeats. Yesterday the DAX closed little changed at 25,578 points.

Investors are primarily hoping for an easing of tensions on the oil market. Reports that Saudi Arabia plans to put its east-west pipeline back into operation soon also help. Brent crude oil is trading at less than $100 per barrel, but has recently risen slightly again.

According to US President Donald Trump, the US and Iranian delegations have "agreed" to have another conversation "in the very near future." During his speech to the UN heads of state and government, Trump said he believed an agreement was possible after the congressional elections on November 3rd. At the same time, however, he threatened the “destruction” of the Islamic Republic.

Market participants are now also looking hopefully to Chinese President Xi Jinping's state visit to Washington, which begins this evening. They are counting on an extension of the customs moratorium, which expires at the beginning of November. On the other hand, there could be important agreements on trading in raw materials as well as artificial intelligence (AI) and semiconductors.

There was reluctance on the Chinese stock exchanges before the meeting. The Shanghai SSE 100 fell slightly. In South Korea, however, the AI ​​rally continued. The Kospi gained 0.9 percent. The Tokyo Stock Exchange was closed today for a public holiday.

The stock exchanges in New York also had mixed trends. The standard stocks on the Dow Jones lost 0.4 percent, while technology stocks on the Nasdaq gained half a percent. The Nasdaq 100 reached a new record high for the first time since June. The technology rally continues to be fueled by strong demand for new AI apps from Meta and Google.

Siltronic shares are falling significantly in the MDAX. Overnight, Wacker Chemie further reduced its stake in the semiconductor wafer manufacturer. Wacker placed 2.2 million Siltronic shares with institutional investors for 171 million euros. As a result, participation fell from 21.67 to just under 15 percent. The papers were sold at 77.25 euros each.

KWS Saat shares fell by up to 11.5 percent in early trading after disappointing figures. “The numbers presented and the outlook may not be enough to support current price levels,” said one trader. The SDAX-listed seed manufacturer felt the effects of the tense global agricultural situation in the past financial year (until the end of June) and recorded declines in sales and earnings. KWS wants to grow again this year. However, the targeted three percent only corresponds to the lower end of the sales target for 2028.