Germany's DAX Index Closes Lower Amid AI Concerns and Bond Yield Increases
Germany's benchmark index, the DAX, closed at 24,186.49 on December 12, 2025, marking a decline as investor sentiment cooled towards the weekend. Despite this, the index saw a modest weekly gain of approximately 0.7%, buoyed by mid-week relief from central banks. However, concerns over an AI-driven equity bubble and rising European bond yields have created a cautious trading environment. Industrial production in Germany increased by 1.8% month-on-month in October 2025, while exports rose by 0.1% and imports fell by 1.2%. The export rise was unexpected, although shipments to the U.S. and China decreased significantly, highlighting uneven external demand. Additionally, Germany's 30-year bond yield reached its highest level since July 2011, impacting rate-sensitive sectors like real estate.