Frankfurt’s DAX 40 trimmed earlier losses to finish about 0.3% lower at 23,750 on Monday, broadly in line with other major European indices, as investors reacted to the latest geopolitical developments. Tensions intensified after President Trump announced a naval blockade following the breakdown of negotiations, with additional military strikes reportedly under consideration. In response, oil and gas prices climbed, although markets still appear to be pricing in the possibility of a negotiated settlement.
At the same time, investors continued to digest the outcome of Hungary’s election, while attention increasingly turned toward the start of the corporate earnings season. Telecoms, consumer cyclicals, and banks came under the most pressure. Deutsche Telekom fell nearly 6% after JPMorgan cut its target price to €40 per share from €41.50, citing mounting competitive pressure at T‑Mobile US. Lufthansa dropped 3.2%, weighed down by higher oil prices and a fresh pilots’ strike that disrupted operations at German airports.
By contrast, SAP and Rheinmetall posted solid gains, each rising more than 2%.
