European Stocks Decline Amid Profit-Taking and Economic Uncertainty; Bayer Shares Plunge on Capital Increase Speculation

European stock markets experienced a downturn on March 7, 2025, with the DAX falling 1.4% to 23,092 points and the Euro Stoxx 50 decreasing by 0.7% to 5,483. Profit-taking after a recent rally and concerns over economic uncertainties contributed to the decline. The volatility index, a measure of market fear, indicated expectations of turbulent conditions. Bayer shares plummeted 6.1% following reports of a potential capital increase to address legal disputes. Luxury stocks also declined due to disappointing import data from China, with Kering, Moncler, and LVMH falling by 4%, 2.9%, and 2.3%, respectively. Despite exceeding delivery expectations, Airbus shares fell by 0.9% due to a decrease in deliveries of high-margin models. Defense stocks experienced a downturn after recent gains, with Hensoldt falling 8.2% following a downgrade by Kepler analysts. The US jobs report and speeches from Fed members are anticipated later in the day, potentially influencing market direction.