Frankfurt’s DAX 40 fell about 1% to 24,100 on Tuesday, its lowest level in a week, as escalating tensions in the Middle East and rising oil prices weighed on sentiment. Although the ceasefire with Iran has held for nearly five weeks, US President Donald Trump warned it is now “hanging by a thread.” Investors are concerned about a potentially prolonged impact on global markets and the broader economy, even as they look to China to possibly mediate between the opposing sides.
In corporate news, Munich Re dropped 4% despite reporting strong profits, as the reinsurer accepted price reductions in contract renewals. Siemens Energy slipped 1.6% after a solid second quarter and plans to increase shareholder returns, while Thyssenkrupp lost 1% after cutting its revenue forecast on the back of weak automotive demand and lower steel prices. On the upside, Bayer jumped 4.6% after a strong start to the year, supported by robust soybean and corn seed sales and ongoing cost-cutting measures.
