Stock markets in decline: Political uncertainties weigh on DAX & Co.

Stock markets in decline: Political uncertainties weigh on DAX & Co.

The European stock markets are weak on Thursday afternoon, August 29, 2025. The DAX recorded a decline of 0.2 percent and was trading at 24,007 points. The Euro-Stoxx-50 also fell by 0.1 percent, which can be attributed to ongoing political and economic uncertainties. These factors are weighing heavily on investor sentiment. it-boltwise.de reports several main reasons for investor reluctance.

The focus is on political uncertainties in Europe, particularly the upcoming elections in France. The country's high debt and deficits are not being adequately addressed, undermining market confidence in the French economy. In addition, ongoing geopolitical tensions, especially in the form of Russia's war of aggression against Ukraine, are drawing attention. Worrying signals are also coming from the USA regarding Donald Trump's economic policies, which are having a critical impact on the global financial markets.

Market developments and company movements

The uncertainties in US politics are leading to a more tense market mood, which is reflected in stock prices. For example, Delivery Hero suffered a 1.8 percent decline after the company lowered its adjusted EBITDA and cash flow forecasts. Still, some companies, such as Pernod Ricard, saw a 3.8 percent increase in share price despite a weaker outlook. Takeover activities surrounding Prosiebensat.1 by MFE-Mediaforeurope are also causing market movements.

A look back at the DAX shows that it fell by around 1.1 percent in June 2025 and closed at 23,057 points. This was the third consecutive trading day of losses. The reasons for these declines are varied, including political uncertainty in the Middle East, specifically the escalation of the conflict between Israel and Iran and possible US military actions against Iran. These geopolitical challenges have since influenced market reactions and created a sense of concern among investors.

Market strategies and outlook

The current market situation has prompted investors to consider more defensive market strategies. Geopolitical uncertainty and monetary policy volatility are creating a tense mood. Experts recommend a wait-and-see approach, as unclear political developments and possible further interest rate hikes by central banks could continue to keep the situation complicated. The DAX is also approaching important technical support levels, such as the 50-day line, while it has already fallen below short to medium-term supports.

In summary, the decline in the DAX and the general uncertainty in the markets reflect a growing sense of skepticism and caution among investors. Geopolitical tensions, combined with uncertain monetary policy, have the potential to have a lasting impact on investors' market strategies. These developments will be closely monitored as markets remain under pressure.