France in Focus

In Paris, President Emmanuel Macron continues to struggle for a governmental solution. Defense Minister Sébastien Lecornu is tasked by the President to form a new cabinet by Wednesday, following his unexpected resignation on Monday. If unsuccessful, observers suggest two options: new elections or Macron's resignation. The latter has been ruled out by the President so far, but France's increasing political paralysis fuels speculation.
With a national debt exceeding 110% of GDP, France's budget situation remains tense; rating agencies see no turnaround. Investors fear neither right nor left parties are willing to consistently reduce deficits.

Industry with Another Setback

Also from Germany, there were no positive impulses on Tuesday: The Federal Statistical Office reported a 0.8% decline in industrial orders in August - the fourth consecutive monthly decline. Analysts had expected a slight increase. "That was another cold shower for the industry," commented Commerzbank chief economist Jörg Krämer. He does not expect a noticeable recovery until 2026, when additional government spending will provide economic stimuli.

The Federal Ministry of Economic Affairs, however, sees signs of stabilization: An increasing number of domestic large orders, especially in the defense sector, may indicate a trough.

Individual Stocks in Focus

In the MDAX, Traton is under pressure with a minus of four percent. The reason is new US tariffs of 25% on tractors from November. Bayer also loses around four percent after Goldman Sachs lowered the growth prospects of the chemical company but confirmed the buy recommendation.