Frankfurt’s DAX 40 slipped 0.6% on Thursday, retracing part of the more than 1.7% gain recorded in the previous session, as renewed concerns over a potential escalation of the Middle East conflict weighed on sentiment in line with other major European markets. Both Iran and the US signaled that attacks could intensify in the coming days, driving energy prices higher and reigniting inflation worries.
At the same time, investors continued to digest a fresh round of corporate news. Transport & logistics (-3.3%) and pharma & healthcare (-1.3%) were the weakest sectors, while financials also came under pressure. Among individual stocks, Deutsche Post, the parent of DHL, fell nearly 4% after issuing a 2026 profit outlook that came in slightly below market expectations. Healthcare group Merck dropped more than 6% at one point, before paring much of the decline, as its 2026 guidance and commitment to an unchanged dividend disappointed investors. Financials Commerzbank (-1.4%), Allianz (-0.7%) and Deutsche Bank (-0.2%) also ended the session lower.
