Following a measured beginning, the German stock market demonstrated resilience on Tuesday, as investors seized opportunities in equities despite ongoing apprehensions regarding the situation in the Middle East. As the 8 p.m. Tuesday deadline established by U.S. President Donald Trump draws near, there is a modicum of optimism regarding a potential resolution to the conflict in Iran.
Trump expanded his caution regarding Iran to encompass possible attacks on critical infrastructure, including power plants and bridges, should Tehran not secure an agreement and the Strait of Hormuz, an essential global energy corridor, remains closed. Trump characterized Iran as a ‘active, willing participant’ in negotiations. The benchmark DAX, which experienced a slight decline to 23,095.50 in early trades, subsequently increased by 203.87 points or 0.88% to reach 23,371.95 recently.
- BASF experienced an increase of nearly 2.5%, while Infineon Technologies saw a rise of 2.35%.
- Fresenius Medical Care, Mercedes-Benz, Commerzbank, Munich RE, Deutsche Bank, Daimler Truck Holding, Hannover RE, and Deutsche Post experienced an increase of 1.5% to 2%.
- Allianz, Brenntag, Bayer, Continental, Deutsche Telekom, Siemens, BMW, and MTU Aero Engines experienced significant upward movement.
- Heidelberg Materials experienced a decline of 0.8%. Qiagen, Rheinmetall, RWE, and E.ON exhibited weak trading performance.
In economic news, Germany’s S&P Global Composite PMI declined to 51.9 in March, a decrease from 53.2 in February, indicating the most subdued private-sector expansion observed this year. The current conflict in the Middle East has negatively impacted growth in the service sector, whereas manufacturing output has reached a 49-month peak, propelled by supply chain disruptions that, somewhat counterintuitively, enhanced factory activity. The HCOB Germany Services PMI experienced a downward revision to 50.9 in March, compared to a preliminary estimate of 51.2, reflecting a decline from 53.5 in February. This represented the most subdued expansion in services activity since a decline observed in August 2025.
The S&P Global Eurozone Composite PMI experienced a minor upward revision to 50.7 in March 2026, compared to a flash estimate of 50.5. However, this figure still falls short of February’s 51.9, indicating the most subdued private-sector expansion since June 2025. The S&P Global Eurozone Services PMI declined to 50.2 in March 2026, down from 51.9 in February and near the preliminary estimate of 50.1, indicating the weakest performance since May of the previous year.