The DAX 40 closed 2.2% lower at 24,897.5 on Wednesday, marking its steepest daily decline since March 19, as escalating tensions in the Middle East fueled a broad risk-off mood. Speaking at the NATO summit, President Trump stated that the ceasefire with Iran had collapsed following mutual attacks and warned that the US would “probably strike the country hard again tonight.”
Oil prices surged in response, driven by fears of renewed military action and potential disruptions to energy supplies, which in turn intensified inflation worries. At the same time, investors continued to pare back positions in semiconductor and AI-related stocks amid mounting concerns over elevated valuations.
Losses were broad-based, with banks, financials, autos, consumer discretionary, and industrials all under pressure. Real estate group Vonovia was the worst performer, dropping 5.7%, followed by Deutsche Bank (-5%), Heidelberg Materials (-4.6%), and Rheinmetall (-4.5%). Mercedes-Benz Group fell 3.9% after reporting an 8% year-on-year decline in Q2 car sales, weighing on the broader auto sector. Lufthansa slumped 6.5%, hit by the jump in oil prices and a Citigroup downgrade to “Sell.”
