Frankfurt’s DAX 40 declined 0.8% to around 24,900 on Wednesday, weighed down by rising geopolitical uncertainty and the renewed focus on President Trump’s trade policy rhetoric. Reports of fresh clashes between the US and Iran stoked fears over the durability of the fragile ceasefire, sending oil prices higher.
Simultaneously, the US administration on Tuesday proposed additional tariffs of 10% or 12.5% on imports from 60 economies, including the EU and the UK, in connection with forced-labour concerns, raising the prospect of a renewed escalation in trade tensions.
Energy-sensitive airline stocks came under pressure, with Lufthansa losing about 1%. Banks also retreated, as Deutsche Bank fell 2.8% and Commerzbank slipped 1.1%. Automakers weakened on worries they could be targeted by the new tariff measures, with BMW and Mercedes-Benz Group each down 2%, and Volkswagen off 1.9%.
