FX.co ★ DAX Slips on Thursday

Frankfurt’s DAX 40 dropped more than 1% to below 22,700 on Thursday, erasing the previous session’s gains, as doubts mounted over a quick resolution of the Middle East conflict despite President Trump’s assurances that productive negotiations are ongoing. On Wednesday, Iran rejected a US proposal for a pause in hostilities, continued its attacks on Israel and Gulf states, and set out its own conditions, including reparations and control over the Strait of Hormuz. Persisting geopolitical tensions are pushing energy prices higher, adding to global inflationary pressures and deepening concerns about the economic outlook. All major sectors traded in negative territory, with technology, industrials, and financials leading the declines. Among individual stocks, Siemens Energy, Infineon, Rheinmetall, and MTU Aero Engines were among the weakest performers, falling 3.4%, 3%, 2.9%, and 2.6%, respectively.