The DAX Index Closes 0.59% Lower

The DAX Index dropped 148 points or 0.59 percent on Wednesday to close at 25000 points. Losses were led by Infineon (-5.45%), BASF (-2.99%) and Bayer (-2.87%). Offsetting the fall, top gainers were HeidelbergCement (3.41%), Volkswagen (3.20%) and BMW (2.79%).

The DAX 40 pared initial losses to close about 0.6% down around 25,000 on Wednesday, as investors assessed corporate earnings alongside escalating tensions in the Middle East. Oil prices remained elevated following renewed US strikes against Iran and the reimposition of a blockade on its ports. Meanwhile, President Trump issued a fresh ultimatum to Iran, warning that Washington would expand its military strikes to the country's critical infrastructure unless Tehran reaches an agreement by next week. Most sectors witnessed selling pressure, particularly technology and chemical companies. The positive spillover from ASML Holding's strong results was limited. While LPKF gained 0.6%, shares of Infineon Technologies (-6.6%) and Siltronic (-5.5%) declined sharply. BASF fell 2.9% despite reporting strong preliminary results, as its unchanged free cash flow guidance disappointed investors and raised concerns about profitability. On the other hand, automotive stocks saw increased buying.

The DAX 40 fell more than 1% to around 24,860 on Wednesday, following modest gains in the previous two sessions, underperforming its regional peers. Investors kept a close eye on the earnings season while also weighing elevated tensions in the Middle East. Oil prices continued to rise following renewed US strikes against Iran and the reimposition of a blockade on its ports, despite President Trump's withdrawal of a proposed 20% tax on goods transiting the Strait of Hormuz. At the same time, the technology sector came under pressure. The sell-off was broad-based, with techs, retailers and chemical companies among the worst performers. Infineon Technologies dropped over 2% despite upbeat results from ASML. Software company SAP fell 1.7%. Zalando (-3.1%), Rheinmetall (-2.4%) and BASF (-2.1%) also posted steep losses.