The DAX Index Closes 1.31% Lower

The DAX 40 closed about 1.3% down at 24,796 on Wednesday, reversing yesterday's advance, amid fading hopes of a quick resolution to the Middle East conflict and possible new tariffs from the Trump administration. Hostilities flared up, while conflicting signals over the status of negotiations kept investors on edge. Meanwhile, the US administration vowed to impose a 10%-12.5% tariff on its top trading partners, including the EU and the UK, over alleged links to goods produced with forced labour. Scout24 and SAP were the top losers among stocks, falling 4.9% and 4.1%. Deutsche Bank dropped 3.7% after CFO Raja Akram signalled that provisions for bad loans in the June quarter could exceed analysts’ expectations. Automakers also faced pressure, with Mercedes-Benz Group and BMW down 3.1% and 2.3%, respectively. On the opposite side, top gainers included RWE (3.7%), Merck (2.1%), Bayer (1.7%) and E.ON (1.7%).

The DAX Index dropped 328 points or 1.31 percent on Wednesday to close at 24796 points. Losses were led by SAP (-4.31%), Deutsche Bank (-3.65%) and HeidelbergCement (-3.44%).

Frankfurt's DAX 40 fell nearly 1% to below 24,900 on Wednesday, pressured by geopolitical uncertainty and the return of President Trump’s trade policy rhetoric. Reports of intense clashes between the US and Iran raised concerns over the fragile ceasefire, pushing oil prices higher. At the same time, the US administration on Tuesday proposed imposing additional tariffs of 10%–12.5% on imports from 60 economies, including the EU and the UK, over alleged links to goods produced with forced labour, potentially reopening trade tensions. Energy-sensitive airlines came under pressure, with Lufthansa down around 1%. Banks also moved lower, as Deutsche Bank and Commerzbank dropped 2.8% and 1.1%, respectively. Automakers, including BMW (-2%), Mercedes-Benz Group (-2%) and Volkswagen (-1.9%) slipped on concerns they could be targeted by fresh tariffs. Also, the AI-led rally that had boosted IT and chip stocks showed signs of fading, with Infineon Technologies falling 1.5% while SAP gained 0.3%.