European stock markets opened the week with slight declines, as Friday's gains following strong US employment data were quickly reversed. The DAX fell by 0.3% to 19,068 points, while the Euro Stoxx 50 decreased by 0.1% to 4,949. Despite geopolitical risks in the Middle East, particularly following Iranian missile attacks on Israel, market reactions have been relatively muted.
In Germany, new order intake sharply declined by 5.8% in August, raising concerns about the country's industrial demand. This downturn suggests that the German economy may stagnate in the second half of the year, with any recovery likely to be slow.
Interest-sensitive sectors saw a sell-off, particularly technology and real estate stocks. However, bank shares rose by 0.8%, benefiting from higher interest rates that improve lending margins. Commerzbank led gains in the DAX with a 1.9% increase, despite warnings from its new CEO about risks associated with a potential acquisition by Italy's UniCredit.
In Italy, the FTSE MIB index showed slight improvement, buoyed by gains in Amplifon, which rose 4% ahead of its quarterly results, and Recordati, up 1.2% following a drug rights acquisition. Overall, the sentiment in the banking sector improved, with UniCredit and Intesa Sanpaolo gaining 0.5% and 0.9%, respectively.