FX.co ★ DAX Declines As Yields Stay High

German equities experienced a downturn on Monday, influenced by the surge in government bond yields leading investors to secure profits before year-end festivities. The yield on the German 10-year bund has escalated to its peak since mid-November, mirroring a climb in U.S. Treasury yields due to uncertainties surrounding U.S. policy under Trump and the future trajectory of the Federal Reserve's interest rates.

The DAX index dipped by 75 points, or 0.4%, settling at 19,909, following a 0.7% increase on Friday. Technology stocks faced declines, with Infineon Technologies witnessing a nearly 1% drop.

Siemens Healthineers saw a decrease of 0.5% after Ralf Thomas, Chief Financial Officer of Siemens AG, revealed to the Handelsblatt newspaper that the company is assessing its controlling interest in the medical technology subsidiary. Consequently, Siemens Healthineers' shares fell by 0.4%.

In contrast, BayWa's shares surged by 19% following the announcement of a restructuring plan, which includes reducing its workforce from 4,250 to 1,500 by the end of 2027, underscoring a strategic shift in its operations.