Blue-chip DAX Index Slumps; German Industrial Output Rises

11:47 AM EDT, 10/07/2026 (MT Newswires) -- The blue-chip DAX index closed Wednesday 1.41% lower, snapping a three-session winning streak, as rising oil prices and higher bond yields weighed on sentiment despite stronger-than-expected German industrial production data. According to Destatis, industrial output in August rose 2% on a monthly basis, compared with a revised 1.2% fall earlier and an expected 0.5% gain. "The August rebound was mainly driven by strong activity in construction and manufacturing, while production in the automotive sector weakened, probably as a result of the summer holidays. Interestingly, this data suggests that the economic impact of the heatwave and drought in August was less severe than feared," ING said in a quick take report. "Looking ahead, the war in the Middle East, high oil prices, higher interest rates as well as the likely upcoming shock of higher gas prices in the next heating season, pose clear risks to the German outlook." Meanwhile, oil prices rose, with Brent crude moving back above $100 a barrel as Iran stepped up attacks on tankers transiting the Strait of Hormuz, adding to inflation concerns and the prospect of higher interest rates. Against this backdrop, Reuters, citing two European Union diplomats, reported that the International Energy Agency's governing board will hold an informal meeting Wednesday to discuss a proposed release of oil and diesel stocks, with details regarding the exact volume breakdown and composition of the reserves remaining "unclear." Separately, citing Germany's economy ministry, Reuters reported that the country will participate in the release of energy reserves agreed by the IEA in March. In corporate news, German state-owned utility Uniper (UN0.F) received indicative bids from Apollo Global Management, Norway's Equinor and a consortium comprising KKR and German power supplier RWE (RWE.F), Reuters reported, citing people familiar with the matter. The bidders will be informed in the coming weeks whether they advance to the next round. RWE ended the session 1.27% in the red, while Uniper was flat on Xetra. Meanwhile, under its new "Sportwagenschmiede '35" strategy, Porsche AG (P911.F) aims to reach group sales between 41 billion euros and 45 billion euros by 2035. The German automaker said it reached an agreement with employee representatives to safeguard core jobs through 2035, while targeting a 25% medium-term workforce reduction, with a strategic goal of 30%, including 9,000 job cuts and a 40% reduction in management positions. Porsche ended the trading day 0.85% lower.