DAX: Cautious Trading Amidst Global Uncertainties – Market Report 24.02.2026

Frankfurt, Germany – February 24, 2026 – The DAX edged slightly higher today, closing at 18:13 CET, despite ongoing uncertainty surrounding new U.S. Tariffs and broader anxieties about the global economic outlook. After initially falling below the 25,000-point mark, the German benchmark finished the session at 24,986 points, up 0.02 percent from yesterday’s close.

The cautious trading reflects a complex interplay of factors, including the fallout from the U.S. Supreme Court’s recent ruling on tariffs, escalating tensions in the Middle East, and growing concerns about the sustainability of valuations in the technology sector. The imposition of new 10 percent U.S. Tariffs, following the court’s decision, has injected fresh volatility into global markets, prompting investors to reassess risk exposure.

“The brave are currently in the minority,” commented market expert Thomas Altmann of QC Partners, encapsulating the prevailing sentiment. “The high level of uncertainty is leading to restraint in the stock market and paralyzing trading activity.”

The source of much of the uncertainty lies in the unpredictable trade policy of U.S. President Donald Trump. While the Supreme Court invalidated a significant portion of previously imposed tariffs, the subsequent implementation of new blanket tariffs has left businesses and investors scrambling to adapt. Trump has signaled the possibility of increasing the tariff rate to 15 percent, but has yet to issue a formal decree, adding to the ambiguity.

Adding to the pressure, U.S. Logistics giant FedEx has initiated legal action against the Trump administration, challenging the legality of the new tariffs. The company is seeking full reimbursement for tariffs already paid, citing the Supreme Court’s ruling. While FedEx did not disclose the specific amount It’s seeking, the lawsuit underscores the significant financial implications of the tariff dispute.

Within the DAX, shares of Fresenius Medical Care (FMC) and MTU Aero Engines experienced notable declines. FMC, despite reporting an 82 percent surge in profits for the previous year, offered a cautious outlook for 2026, suggesting a potential decline in earnings. The stock fell 5.6 percent. MTU Aero Engines, while also reporting record profits, saw its shares drop 6.4 percent due to the high costs associated with a costly recall of a newly developed engine in partnership with Pratt & Whitney.

Despite the headwinds, there are some signs of resilience in the German economy. The ifo Institute’s export expectations index rose to +2.6 points in February, up from -0.8 points in January. “The export economy is starting the new year with some tailwind,” said Timo Wollmershäuser, head of forecasting at the ifo Institute. However, he cautioned that a broad-based and dynamic recovery remains elusive.

The ongoing conflict in Ukraine also continues to shape market dynamics, particularly for companies in the defense industry. Gabler Group, a German supplier of submarine components, announced plans for an initial public offering (IPO) on March 9, 2026. The company is offering shares in a price range of €37 to €47, aiming to raise up to €142 million. The IPO is expected to benefit from the increased demand for defense-related products and services.

The performance of European defense stocks has been remarkable in recent years. Rheinmetall, Germany’s largest defense contractor, has seen its share price soar from €92 to €1,723. Hensoldt, a specialist in military electronics and radar systems, has more than tripled in value. Similar gains have been observed among leading European competitors, including Leonardo Group (Italy), Saab (Sweden), and BAE Systems (UK).

Oil prices also remain a key factor influencing the global economic landscape. According to data from SGANalytics, oil prices slipped around 5.0% in December and a steep 18-22% in 2025, ending December in a bearish consolidation. Brent crude settled in the $60-$63 range, while West Texas Intermediate (WTI) struggled to remain above $60 per barrel. This downward trend reflects a persistent global surplus of oil, suggesting limited upward pressure on energy prices in the near term.

The current market environment demands a cautious approach from investors. The combination of geopolitical risks, trade uncertainties, and concerns about the sustainability of growth in the technology sector is creating a challenging backdrop for risk-taking. Value stocks, particularly those in sectors such as telecommunications, industry, energy, and pharmaceuticals, are increasingly attracting attention as investors seek companies with stable cash flows and attractive dividend yields. The shift towards value investing suggests a growing preference for companies that can deliver consistent returns in a volatile market.