DAX Closes at 2-Month Low

The DAX Index fell 144 points or 0.57 percent on Thursday to close at 25267 points. Leading the losses are Infineon (-4.25%), Rheinmetall (-3.19%) and Volkswagen (-2.77%). Top gainers were Beiersdorf (2.98%), Munich RE (1.79%) and Hannover Rueck (1.74%).

Frankfurt's DAX 40 finished about 0.6% down at 25,256 on Thursday, reaching the lowest since July 24, in line with broader weakness across European markets. Oil prices climbed further, adding to pressure on sovereign bonds amid heightened tensions in the Middle East. The Houthis reportedly fired missiles at Saudi Arabia, while an adviser to Iran’s Supreme Leader warned against opening a new front in response to a potential US attack. Traders also eyed high-stakes summit between US President Trump and Chinese leader Xi Jinping, with trade, AI and the Middle East war among the key issues on the agenda. Several sectors faced pressure, particularly tech, alongside autos, banks, retailers and industrials. Infineon Technologies led losses, dropping 3.9%, followed by Rheinmetall, Scout24, Volkswagen, BMW and Deutsche Bank, down between 2% and 3.4%. On the upside, top gainers included Beiersdorf (3%), Munchener Ruck (2.2%) and Hannover Ruck (2.2%).

Frankfurt's DAX 40 fell about 0.2% to around 25,360 on Thursday, extending losses from the prior day, as traders cautiously awaited developments in the Middle East conflict. Geopolitical tensions remained elevated, with diplomatic efforts reportedly showing little sign of progress, supporting oil prices and keeping government bond yields close to multi-year highs. At the same time, concerns over AI risks were mounting among tech leaders after Australia disclosed that an OpenAI agent had breached a government website. Meanwhile, the focus turned to a high-stakes summit between US President Trump and Chinese leader Xi Jinping set to focus on AI, trade and the Middle East war. The tech sector and autos were the most pressured. Among stocks, BMW (-2.5%), Volkswagen (-2.1%), Rheimental (-2.5%), SAP (-1.6%) and Mercedes-Benz Group (-1.6%) posted the biggest losses. On the flip side, Siemens, Henkel, MTU Aero Engines and Deutche Telekom advanced firmly, each rising more than 1%.