Frankfurt's DAX 40 dropped more than 1.5% to around 23,100 on Thursday, its lowest level since November 2025 and the second consecutive session of losses. The decline came as escalating Middle East tensions, including attacks on energy infrastructure, heightened concerns over a prolonged global energy supply crisis.
On the monetary policy front, the Federal Reserve left its benchmark interest rate unchanged on Wednesday. Chair Jerome Powell underscored the increasingly uncertain outlook for both growth and inflation in the aftermath of the Iran war. The ECB is likewise expected to keep rates steady later today, though a hike remains possible in the summer.
Selling pressure was broad-based across sectors. Among individual stocks, Vonovia was the worst performer, slumping nearly 10%. The company reported a swing to a €4.19 billion net profit in 2025 from a €962.3 million loss the previous year, a result largely driven by a one-off €2.5 billion tax windfall rather than underlying operating strength. Siemens Energy (-4.7%), Infineon Technologies (-4%), and Siemens (-3.4%) also recorded steep losses.
