DAX Underperforms in Europe

The DAX 40 closed about 0.2% down at 25,067 after a volatile session on Friday, following yesterday's rise, underperforming its European peers. The tech sector remained a drag on the market, while renewed tensions in the Middle East kept investors cautious, despite expectations of continued US-Iran talks. Weakness in tech stocks and industrials contrasted with strong performance of telecommunication companies and banks. AI-exposed companies like Siemens Energy (-2.6%), Hochtief (-2.2%) and Infineon Technologies (-1.5%) faced heavy pressure. Industrial giant Rheinmetall dropped 2%. Among top gainers, Deutsche Telekom climbed 3% after JPMorgan upgraded the stock to "buy." Heidelberg Materials advanced 2.8%, while Commerzbank and Deutsche Bank gained more than 1% each. For the week, the index lost roughly 2.8%.

The DAX Index decreased 51 points or 0.20 percent on Friday to close at 25067 points. The decline was led by Siemens Energy (-2.64%), Rheinmetall (-1.98%) and E.ON (-1.46%). On the upside, the strongest performers were Deutsche Telekom (3.08%), HeidelbergCement (2.94%) and Commerzbank (1.95%).

The DAX 40 edged up 0.3% toward 25,200 on Friday, marking the second session of gains, mirroring cautious movements across European markets. Expectations that negotiations between the US and Iran would continue despite the recent exchange of fire continued to support investor sentiment. According to some sources, the White House is preparing for a "prolonged but controlled escalation" with Tehran rather than a full-scale conflict. Meanwhile, the tech sector came under renewed pressure, with traders focused on the highly anticipated US market debut of South Korean chipmaker SK Hynix. Telecommunication companies stood out, with Deutsche Telekom rising 2.9% after receiving a "buy" rating from JP Morgan. Bayer gained 2.6% after agreeing to sell a minority stake in its contraceptives business to Apollo Global Management for €3 billion. Conversely, chipmaker Infineon Technologies (-2.7%) and AI-related Siemens Energy (-1.6%) lagged. For the week, the index was poised to decline over 2%.