The DAX Index Closes 1.28% Lower

Frankfurt's DAX 40 closed about 1.5% down at 22,581 on Thursday, reversing yesterday's gains, amid lingering uncertainty surrounding the end of the war in the Middle East. After issuing a stark warning to Iran to make progress in talks or face intensified action, Trump later tempered expectations of a negotiated deal he had earlier alluded to in a Cabinet meeting, stressing that any breakthrough hinges on Iran’s willingness to compromise. The prolonged tensions are driving energy prices higher and contributing to rising global inflation and economic concerns. Mos sectors saw declines, led by industrials, retailers, financials and techs. In equities, Siemens Energy, Rheinmetall, MTU Aero Engines, Zalando, Airbus saw losses between 3%-5.2%. Porsche Automobil Holding dropped nearly 3% after reporting a drop in its after-tax profit for 2025, pressured by costs both in the broader automotive group and at Porsche AG.

The DAX Index fell -293 points or 1.28 percent on Thursday to close at 22664 points. Leading the losses are Siemens Energy (-5.46%), Zalando (-4.52%) and Rheinmetall (-3.86%).

Frankfurt's DAX 40 fell more than 1% to below 22,700 on Thursday, reversing yesterday's gains, as uncertainty about a swift resolution to the Middle East conflict prevailed, despite President Trump's claims that productive talks are underway. Iran on Wednesday rejected the US 15-point plan to pause the war, continued attacks on Israel and Gulf countries, and proposed its own terms, including reparations and control of the Strait of Hormuz, while Washington warned of harsher strikes if Iran's leadership does not back down. The continuing tensions are driving energy prices higher and contributing to rising global inflation and economic concerns. All major sectors traded lower, led by tech, industrials and financials. In equities, Siemens Energy, Infineon, Rheinmetall and MTU Aero Engines were among the worst performers, falling 3.4%, 3% and 2.9% and 2.6%, respectively.