The DAX Index Opens 0.36% Lower

Frankfurt's DAX 40 edged lower on Thursday, falling 0.2% to around 25,135, after fresh attacks in the Middle East dampened hopes for a swift resolution to the Middle East conflict. The US and Iran have again exchanged fire in the Strait of Hormuz, despite a ceasefire and ongoing negotiations to end the war. This prompted a renewed rise in oil prices, reigniting inflation and growth concerns. Energy-sensitive stocks such as Siemens Energy (-2%) and airline Lufthansa (-1%) were particularly hit. Pharmaceutical companies also faced pressure, with Bayer down nearly 2% on reports of a new US lawsuit over its market position in a corn seed raw material. On the flip side, defense stocks saw strong demand amid rising tensions, with Rheinmetall up over 4% leading gains, followed by Hensoldt (6.8%) and Renk (3.6%). Rheinmetall was further lifted by reports of a €1 billion order for more than 2,000 military transport vehicles. Infineon Technologies (2.1%) and SAP (1.8%) also advanced firmly.

The DAX Index is losing 91 points. Losses were led by Bayer (-2.12%), Hannover Rueck (-1.67%) and Fresenius Medical Care (-1.54%). Offsetting the fall, top gainers were Infineon (2.65%), Rheinmetall (2.28%) and Adidas (0.85%).

Frankfurt's DAX 40 pared gains to close virtually unchanged at 25,178 on Wednesday, amid cautious optimism about a US-Iran potential deal, amid conflicting signals from both sides. Iranian state media reported details of an unofficial draft peace framework with the US, outlining an end to the US naval blockade and Iran’s commitment to reopen the Strait of Hormuz within 30 days. Energy prices fell even though Washington denied the information. Consumer discretionary stocks were the standout performers. Adidas led gains among stocks, surging 5.3%. Airline Lufthansa advanced 3.3%. Carmakers also advanced strongly, with Mercedes-Benz Group, BMW and Volkswagen adding more than 2% each, buoyed by positive EU monthly car sales data. Top losers included Siemens Energy (-3.9%), RWE (-3.4%) and Fresenius SE & Co (-2.1%).