DE40: Europe sells off on major downgrades and fiscal jitters (02.09.2025)

European equities are trading mostly in the red, with major German stocks weighing on the sentiment after a series of major downgrades (e.g. Commerzbank, Siemiens) by key financial institutions. DAX is the biggest loser of the European session (DE40: -1.5%), followed by Spanish IBX 35 (SPA35: -1.1%) and Italian FTSE MIB (ITA40: -1%). French stocks are slightly stable (FRA: -0.25%), although CAC40 gave up yesterday’s late session gains. Broad EU50 is down 0.7%.

Amid Eurostoxx 600 sectors, real estate posts the biggest losses, followed by IT, dragged by the biggest players in the region (SAP: -2%, ASML: -2.6%, Infineon: -2.7%). Financials and utilities are also down on fiscal worries in the UK, while energy and healthcare stocks buck the broad pessimism. The unsease is also visible on the bond market, with many national bonds seeing their yields higher.

Volatility in Eurostoxx 600 sectors. Source: Bloomberg Finance LP

Changes for DAX-listed companies. Source: Bloomberg Finance LP

DE40 (D1)

DAX futures broke decisively below the psychological 24,000 level, pausing just above the 100-day exponential moving average (dark purple). The EMA100 now acts as a critical support that could stem further losses, while a break below would expose the late-July low as the next key test. On the upside, a recovery back above the blue uptrend line would strengthen the case for ongoing consolidation.

Source: xStation5

Company news:

• Deutsche Bank, Siemens Energy, and Argenx will join the Euro Stoxx 50 on Sept. 22, replacing Nokia, Pernod Ricard, and Stellantis. Rheinmetall and BBVA will also be added, while Mercedes-Benz and BASF will exit, reflecting Stoxx’s periodic index review.

• Fresenius Medical Care shares fell up to 5.9% (the most in entire Eurostoxx 600) after UBS warned earnings could face pressure from weak US dialysis volumes, slowing chronic kidney disease progression, and structurally higher patient mortality. Consensus downgrades are seen as likely, with the price target cut to €38.

• SMA Solar slashed its 2025 outlook, now guiding for an EBITDA loss of €30–80m versus earlier profit expectations of €70–80m. Sales are cut to €1.45–1.5bn, down from €1.55bn. Weak home & business demand, €170–220m in write-downs, asset impairments, and restructuring drive the downgrade, with expanded cost-cutting measures aimed at saving over €100m annually.

• Snowflake and Siemens partnered to integrate factory-floor data with AI analytics, aiming to cut downtime, boost quality, and streamline operations. Siemens’ Industrial Edge captures OT data, while Snowflake’s AI Data Cloud turns it into actionable insights.