Stocks Close: HelloFresh Rebounds, Title Remains Under Pressure
The German benchmark index, DAX, experienced a modest gain on Tuesday, edging closer to its July record high. The latest meeting between U.S. President Donald Trump, Ukrainian President Volodymyr Zelensky, and leading European politicians provided fodder for discussion on the exchanges.
The gains were attributed to recent diplomatic signals in the Ukraine conflict, which have fostered cautious optimism among investors. Analysts interpreted the gathering as a positive signal, with David Perry of JPMorgan describing the talks as "much friendlier" than previous encounters. Jim Reid, market strategist at Deutsche Bank, also spoke of a "constructive tone" in the Washington negotiations.
However, not all sectors of the DAX market fared equally well. Defense stocks, including Hensoldt, Renk, and Rheinmetall, experienced significant losses. Rheinmetall's shares had to take a hit of around five percent, while Hensoldt's shares closed with losses of up to 9.5 percent. Renk's shares also experienced losses.
The MDAX, the German stock market's second-largest index, experienced a slight loss of 0.03 percent to 30,984.89 points. Despite this, the boost to the DAX was enough to propel its top performer, HelloFresh, to the top of the MDAX. The loss-making week was followed by HelloFresh's share recovery. The shares started an impressive recovery the day before, and continued their upward trend on Tuesday, gaining almost seven percent.
Meanwhile, outside the DAX, other companies faced challenges. Wirecard shareholders, including former supervisory board chairman Thomas Eichelmann, suffered significant losses with Eichelmann losing about 616,000 euros due to the company’s collapse in 2020. Palantir Technologies shares fell more than 9% after five consecutive days of decline, losing over 15% in recent trading sessions despite strong quarterly results in 2025. Luxury goods companies Richemont and Swatch saw stock declines of 1.6% and 2.3% amid US tariff announcements.
As the diplomatic landscape continues to evolve, the impact on the German stock market remains to be seen. However, Tuesday's gains suggest that investors are hopeful for a resolution to the Ukraine conflict and a continuation of the market's upward trend.
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