The DAX 40 extended initial losses on the first trading day of September, falling more than 1% to around 25,980, a level last seen in late July. Rising oil prices and bond yields amid intensifying Middle East hostilities are weighing on markets worldwide, as concerns over renewed inflation fuel expectations of interest-rate hikes. Eurozone inflation climbed to 3.3% in August, its highest since September 2023, marking a second straight monthly increase and reinforcing expectations of a tighter ECB policy stance.