FRANKFURT, Jan 14, 2026, 18:18 CET
Germany’s DAX snapped its record streak Wednesday, sliding 0.53% to 25,286.24. Investors cashed in gains and reconsidered the likelihood of near-term U.S. rate cuts. The MDAX, tracking mid-caps, fell 1.44% to 31,774.24.
The pullback comes after the DAX hit a record high Tuesday, marking its longest winning streak in over ten years. Steve Sosnick, chief market analyst at Interactive Brokers, noted, “The key will be what companies tell us about earnings and this earnings season guidance is going to be more important than the actual numbers themselves.” Reuters
New U.S. inflation figures are stirring up the rate talk. The Labor Department reported the consumer price index climbed 0.3% in December. Core CPI, excluding food and energy, increased by 0.2%.
Even before Wednesday’s pullback, some strategists flagged the rally as stretched. “Behind the records, caution is growing,” noted Index-Radar analysts. At the same time, VP Bank chief economist Thomas Gitzel pointed out that the feared tariff-driven inflation surge “has so far failed to materialize,” adding to the uncertainty over the Federal Reserve’s next move. MarketScreener
Symrise has been a key driver pushing the index up this week. The fragrance and flavourings company announced it will launch its first-ever share buyback, capping at 400 million euros. The program runs from Feb. 1 to Oct. 31 and aims to redeem shares and reduce share capital. CEO Jean‑Yves Parisot said this step reflects the group’s “excellent position” to invest and “return excess capital” to shareholders. symrise.com
Symrise’s buyback comes amid some messy housekeeping. The company said it’s in advanced talks to offload its terpenes business and will record a non-cash impairment of about 145 million euros linked to the potential sale. On top of that, it expects another 150 million euros hit tied to its Swedencare stake. Symrise also stuck to its EBITDA margin target of roughly 21.5%, a key measure of operating profitability.
Zalando caught attention after Barclays upgraded the online fashion retailer from “Equal Weight” to “Overweight,” pushing its price target up to 35 euros. Analyst Sarah Roberts highlighted Zalando’s strong data capabilities, diverse product lineup, and robust logistics as key advantages in navigating the industry’s AI-driven disruption—advantages she believes many investors are underestimating. MarketScreener
Germany’s market closed mixed Tuesday, with the DAX barely pushing to a new high. Leading the DAX gainers were Symrise, Zalando and Infineon. On the downside, Fresenius Medical Care, Deutsche Telekom and Deutsche Boerse weighed on the index. The DAX New Volatility index, which tracks expected price swings through options, rose to 16.35.
Stocks in Europe nudged higher again Wednesday morning, with the STOXX 600 hitting a fresh record, up 0.3%. Utilities took the lead, buoyed by UK offshore wind auction results that gave RWE and SSE a boost. Kyle Rodda, senior financial market analyst at Capital.com, noted, “If the Supreme Court smacks down these tariffs, the first response is going to be fairly positive. But it’s very unlikely the U.S. administration is going to roll over.” Reuters
The risk hasn’t disappeared—it’s just been lurking. Earlier this week, a volatility gauge for euro zone equities climbed to its highest point in over a month. Investors fretted over geopolitics and the U.S. threat to indict Federal Reserve Chair Jerome Powell, reigniting concerns about central bank independence.
