The DAX Index Closes 1.95% Lower

Frankfurt's DAX 40 closed about 2% lower at 22,380 on Friday, the lowest since April 2025, marking the third consecutive session of declines. Traders weighed the risk of further escalation in Middle East tensions, reviving concerns over a prolonged energy crisis and price pressures. According to the Wall Street Journal, the US is sending three warships and roughly 2500 additional marines to the Middle East to reinforce positions in the war with Iran. In the meantime, Israel claimed to have killed two senior Iranian security officials, which could prompt fresh retaliation. E.ON (-5.7%) and SAP (-4.2%) posted the steepest losses in equities, while Siemens Energy, MTU Aero Engines, Rheinmetall, GEA Group, Zalando, and Siemens all fell more than 3%. On the upside, Heidelberg Materials and Infineon were the top performers, rising 3% and 1.4%, respectively. For the week, the index logged a 4.6% decline.

The DAX Index dropped -446 points or 1.95 percent on Friday to close at 22394 points. Losses were led by SAP (-4.26%), E.ON (-3.78%) and Zalando (-3.61%).

Frankfurt's DAX 40 eased further on Friday, falling more than 1% to around 22,500, amid persistent global uncertainty due to geopolitical tensions. The simultaneous expiration of futures and options on indices and stocks is also increasing market volatility. Israel agreed to halt energy-field attacks on Iran at Trump’s request, but Tehran’s assault on a Kuwaiti refinery suggests the risk of further escalation remains. Meanwhile, US Treasury Secretary Scott Bessent on Thursday said that the US could lift sanctions on Iranian oil already in the sea to ease pressure, which could provide some respite for US allies. In equities, SAP was at the bottom with losses of over 4%, followed by Zalando (-3.2%) and GEA Group (-2.7%). On the flip side, Heidelberg materials moved to the top, rising 2.8%, and Infineon gained 2% after JPMorgan upgraded the stock, citing stronger demand linked to AI-driven power technologies. For the week, the index is likely to decline about 4%.