The DAX 40 declined approximately 0.3%, dropping below 26,000 on Thursday, reaching its lowest point since late July, and marking the fourth consecutive session of losses. Investors maintained a cautious stance in light of inflation concerns and geopolitical uncertainty, even in the wake of an unexpected action by the US Treasury that alleviated pressure on government bonds globally.

Germany’s 10-year Bund yield persisted at a 15-year high, reflecting market anticipations of heightened defence expenditure. Meanwhile, negotiations aimed at resolving the US-Iran conflict have reached an impasse. Against this backdrop, the Trump administration seems to be pivoting from military intervention to a strategy that emphasises heightened economic pressure on Tehran.

Sectorally, the decline in software, chemical, and telecom stocks significantly outweighed the gains observed in the automotive, semiconductor, and utility sectors. Brenntag experienced the most significant decline among stocks, falling by 3%, trailed by Rheinmetall at -1.7%, SAP at -1.6%, and BASF at -1.4%. On the upside, Continental advanced the most at 1.7%, followed closely by Qiagen NV at 1.4%.