FRANKFURT (dpa-AFX) - A slightly lower-than-expected increase in prices in the United States gave the DAX its seventh consecutive record high on Tuesday. However, the German benchmark index was unable to maintain its lofty level in the afternoon, closing with a modest gain of 0.06 percent at 25,420.66 points. "The current DAX rally is almost frightening," wrote HSBC bank. The SDAX, which comprises 70 smaller listed companies, also reached a record high.
In the US, core inflation—excluding energy and food prices—rose less than expected at the end of 2025. "The big inflation surge due to higher tariffs has so far failed to materialize," noted VP Bank chief economist Thomas Gitzel. If this remains the case, the US Federal Reserve would have "the green light for further interest rate cuts." However, Gitzel cautioned that the data should still be treated with care due to the closure of many US federal agencies in autumn 2025.
The MDAX of mid-cap stocks closed Tuesday down 0.26 percent at 32,237.31 points. The index remains well below its 2021 record high of over 36,400 points.
In the DAX, Symrise led the pack with a gain of 5.1 percent. Investors in the fragrance and flavorings manufacturer bet on a large-scale share buyback program. Zalando took second place with a 4.8 percent increase. Shares of the online fashion retailer benefited from a Barclays upgrade to "Overweight."
Investment bank Berenberg withdrew its buy recommendation for Continental. Shares of the tire manufacturer were among the DAX's weakest performers, falling 2.1 percent.
In the MDAX, shares of TKMS continued their recent rally with a gain of 2.9 percent, bringing their year-to-date increase to over 44 percent. The previous day, expectations of a submarine order from India had caused a stir.
Fuchs shares benefited from positive comments by US banks JPMorgan and Jefferies, rising 3.6 percent. JPMorgan analyst Angelina Glazova initiated coverage of the lubricant manufacturer with an "Overweight" rating.
After Jefferies withdrew its buy recommendation, SMA Solar slumped by 6.3 percent, making it the weakest performer in the SDAX. In contrast, shares of biofuel producer Verbio soared by over 18 percent to their highest level in two years after a new buy recommendation from MWB Research.
The EuroStoxx 50 rose 0.22 percent on Tuesday to 6,029.83 points, setting another record high like the DAX. Outside the eurozone, Switzerland's SMI slipped by about half a percent. The UK's FTSE 100 was virtually unchanged. The New York Dow Jones Industrial benchmark was weaker at the close of European trading./bek/nas
--- By Benjamin Krieger, dpa-AFX ---
