DAX Plunges on Weak Eurozone PMI Data, Signaling Economic Slowdown

Germany's DAX index fell sharply by over 2% on June 23, 2026, following the release of weaker-than-expected Purchasing Managers' Index (PMI) data for the Eurozone. The downturn reflects growing investor concerns about an imminent economic slowdown in the region, impacting major European equities. S&P Global's flash Eurozone composite PMI dropped to 48.8 in June, down from 50.3 in May, indicating a contraction for the first time in six months. Both manufacturing PMI, at 46.5, and services PMI, at 51.0, contributed to the overall decline, with manufacturing showing a particularly steep contraction. Analysts cite the data as evidence that rising interest rates and persistent inflation are weighing heavily on business activity across the bloc.