DAX continues to weaken: the impact of geopolitics and Web3 on traditional financial markets

German stocks are showing negative dynamics on Tuesday, continuing losses from the previous session due to geopolitical tensions and uncertainty over tariffs. This situation reflects the interconnection between traditional financial markets and the Web3 ecosystem, where geopolitical factors also have a significant impact on cryptocurrency assets.

Political risks in France are also keeping investors on edge. French bonds plummeted after Prime Minister François Bayrou scheduled a confidence vote for September 8 regarding his plans for major budget cuts. This situation resembles the volatility often seen in decentralized finance markets (DeFi) during significant regulatory changes.

Meanwhile, in the USA, President Donald Trump's unprecedented decision to dismiss Federal Reserve member Lisa Cook has raised concerns about the independence of the Fed. Such actions by regulators have a direct impact on both traditional financial markets and the cryptocurrency sector.

The German DAX index fell by 75.93 points or 0.31% to 24,185.66 points a few minutes ago. This trend reflects the overall movement in global markets, including the digital asset market.

Key Stock Movements and Their Connection to Web3

• Commerzbank is losing nearly 6% after the downgrade by Bank of America. The bank's shares were lowered to “underperform” as the analyst considers the valuation to be overstated and sees no growth potential from the current level. This situation highlights the importance of reliable DeFi protocols compared to traditional banking institutions.

• Deutsche Bank is down nearly 2%, reflecting the overall trend of declining trust in centralized financial institutions.

• Deutsche Post, Rheinmetall, and Hannover Rueck are decreasing by 1.3-1.7%, demonstrating the impact of global economic uncertainty on various sectors of the economy.

• Allianz, Munich RE, Zalando, Heidelberg Materials and Symrise are losing 0.8-1.2%, indicating a wide range of impacts from current economic factors.

• Infineon Technologies, Deutsche Boerse and MTU Aero Engines are also in the negative zone, highlighting the interconnection between the technology sector and financial markets.

• Bayer is up by 1.8%, while Sartorius is up nearly 1.5%, demonstrating that even in challenging market conditions, some companies can show positive dynamics.

• Continental, BASF, Deutsche Telekom, Beiersdorf, E.ON, Volkswagen and BMW are growing by 0.5-1.2%, indicating some resilience in certain sectors of the economy.

The views and opinions expressed here are those of the author and do not necessarily reflect the position of Nasdaq, Inc.