DAX Finishes Lower

Frankfurt's DAX 40 closed about 0.3% down at 25,103 on Thursday, in line with most European peers, caution persisted while traders assessed the latest developments in the Middle East. The US and Iran reportedly agreed on a 60-day memorandum of understanding aimed at extending the ceasefire and opening discussions on Iran’s nuclear program, though President Trump has yet to grant approval. Meanwhile, the situation in the region remains tense, with recent US strikes against Iran and reciprocal attacks causing sharp volatility in oil prices. Siemens Energy led losses among stocks, falling 3.9%, followed by Munchener Ruck (-2.4%), Beiersdorf (-2.1%), Hannover Ruck (-2.1%) and Allianz (-1.9%). On the upside, defense stocks saw strong demand, with Rheinmetall rising 4.3%, Renk gaining 5.1%, and Hensoldt adding 4.3%. Infineon Technologies and SAP also performed well, adding 3.9% and 1.3%, respectively, amid continued strong AI momentum and gains in leading tech companies.

The DAX Index fell 86 points or 0.34 percent on Thursday to close at 25092 points. Leading the losses are Siemens Energy (-4.36%), Munich RE (-2.32%) and Allianz (-2.18%). Top gainers were Rheinmetall (4.73%), Infineon (4.60%) and Airbus (2.30%).

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.