On Thursday, German stocks remained muted due to escalating geopolitical tensions between the U.S. and China, which have magnified uncertainties surrounding U.S. policy in the lead-up to the presidential elections.
Investors are also closely watching the European Central Bank's decision on interest rates for further guidance.
The benchmark DAX index experienced a slight decline, dropping 19 points or 0.1 percent to 18,418, following a 0.4 percent decrease in the previous trading session.
In contrast, automaker stocks surged following industry data indicating a robust recovery in new car sales within the EU in June. This recovery was propelled by gains in three of the region's four major markets.
New car registrations increased by 4.3 percent year-over-year, reaching 1.089 million units in June. This rebound comes after a 3.0 percent decline in May.
Among the four significant markets, Italy exhibited the highest sales growth at 15.1 percent, followed by Germany, which saw a 6.1 percent rise.
Automaker stocks reacted positively: BMW increased by 1.8 percent, Mercedes-Benz gained 1.6 percent, and Volkswagen rose by 1.1 percent.
