On Monday, August 25, 2025, the German stock market displayed a mixed performance, with the benchmark DAX index experiencing a slight decline. The DAX closed down 0.2 percent at 24,310 points, a minor pullback from the previous Friday's positive sentiment, which was influenced by indications from the U.S. Federal Reserve regarding potential interest rate cuts. Capital market strategist Juergen Molnar of RoboMarkets noted that the DAX's trading activity remains within the 24,000 to 24,500 point range.
In contrast, the MDAX, representing mid-cap companies, recorded a modest gain of 0.3 percent, reaching 31,077 points. The Euro Stoxx 50, a key index for the Eurozone, saw a decrease of 0.5 percent. Germany's Ifo Business Climate Index for August rose to 89.0, surpassing analyst expectations and signaling an improvement in company outlooks, though the assessment of the current economic situation showed a slight weakening. This marks the highest level for the Ifo index since May 2024, indicating resilience among German businesses.
The energy sector faced notable pressure. Shares of wind turbine manufacturer Siemens Energy fell by 0.9 percent, and Nordex shares declined by 1.6 percent. This downturn was partly attributed to the temporary halt of a wind power project in the US. RWE shares dropped by 1.5 percent after Kepler Cheuvreux downgraded its recommendation from 'buy' to 'take profits,' citing potential cost pressures.
In a positive development for the travel industry, Lufthansa shares reached their highest point since December 2023. This surge followed reports of a planned group-wide restructuring initiative aimed at centralizing functions across its airlines to improve profitability. Meanwhile, the banking sector saw significant activity as UniCredit announced it had increased its stake in Commerzbank to approximately 26 percent, with plans to convert further financial instruments potentially raising its stake to around 29 percent. Commerzbank shares decreased by 0.5 percent following this news.