The DAX was expected to open lower on Wednesday as investors weighed the results of the US midterm elections and continued to assess corporate earnings. IG Markets quoted Germany’s benchmark index down 0.5% at 25,730 points more than two hours before Xetra trading began. It had fallen as low as 25,532 overnight before recovering somewhat. On Tuesday, the DAX closed 0.5% lower at 25,864 points.
Several DAX-listed companies are due to report results, including Fresenius, Heidelberg Materials, Continental and Scout24. BMW lowered its outlook after the market closed on Tuesday, marking its second forecast cut this year. The carmaker now expects an operating margin in its automotive business of between minus 0.5% and 0.5%, compared with its previous forecast of 1% to 3%.
Investors were also responding to projections that the opposition Democrats would take control of both chambers of the US Congress. A Democratic win in the House had been expected, but forecasts for the Senate had been less certain. The prospect of a Congress controlled by Democrats alongside Republican President Donald Trump raised the possibility of political deadlock, according to the report.
The election outlook put pressure on Asian markets, with losses exceeding 3% at points in Japan and South Korea. Japanese technology shares, particularly those linked to artificial intelligence, weighed on the Nikkei amid concerns that Democratic gains could lead to tighter rules for data center projects and slower investment in infrastructure. The Nikkei recovered some ground to close down 1.4%.
US markets ended mixed on Tuesday. The Nasdaq 100 gained 0.7%, ending a three-session run of steep losses, while the S&P 500 rose 0.4%. The Dow Jones fell 0.4%. Semiconductor stocks, including Nvidia, helped the Nasdaq 100, outweighing disappointing business updates from Apple and Palantir.
Oil prices showed little reaction to the election results. Brent crude was last up around 0.5%, at just under $103 a barrel.
Sources: Tagesschau.