Dax confronts substantial setbacks.

Rising long-term government bond yields have pushed the Dax towards substantial losses, reaching levels unseen for more than a decade.

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2025 September 13 . 9:42 AM

2 min read

Dax confronts substantial setbacks.

In a day marked by financial uncertainty, the US markets experienced overall weakness on Tuesday, with no specific reasons given for the performance. This downturn seemed to have a ripple effect, as European markets followed suit.

One of the hardest-hit companies in Europe was Siemens, whose shares fell due to a downgrade by Bernstein Research to "Market-Perform." The German benchmark stock index, the Dax, also felt the impact, dropping significantly by 2.3% to 23,487 points on Tuesday. IG analyst Christian Henke commented that the Dax was saying goodbye to the 24,000-point mark on this day.

Siemens wasn't the only company facing challenges. The shares of SMA Solar plummeted by almost 30% after the company scrapped their annual forecast. Jürgen Molnar, RoboMarkets strategist, assessed SMA Solar's development and stated that the company is currently facing one crisis after another in the form of profit warnings. He pointed out the weak demand for inverters in the commercial and private sectors, as well as no signs of improvement. SMA Solar is now expecting an operating loss of up to 80 million euros for 2025 instead of a profit.

The demand for long-term government bonds from the Eurozone saw a cool reception from investors, causing yields to continue to rise. This trend was also observed in the UK, where long-term government bond yields reached their highest level in over a decade. France also saw long-term government bond yields reach their highest level in over a decade.

Investors seemed to be taking a cautious approach, as evidenced by the wide berth given to long-term government bonds from the Eurozone. Meanwhile, the loss of FMC's stock was due to a sell recommendation from UBS, resulting in a 5% loss on Tuesday.

Analyst Graham Doyle cited structural risks regarding business development in the US and the danger of falling consensus estimates for operating results as reasons for the sell recommendation for SMA Solar. Despite these challenges, Molnar remains focused on providing insightful analysis to help investors navigate the volatile market landscape.