Germany: DAX Closes Sharply Lower.

Frankfurt's DAX 40 finished about 3.4% lower at 23,791 on Tuesday, hitting a level not seen since early December and extending the steep losses from the prior day. Market sentiment continue to be dented by uncertainty over the duration of the ongoing Middle East conflict and its potential impact on the global economy. Retaliatory strikes across the region have heightened concerns about prolonged disruptions to global energy flows, which could add to inflationary pressures and reduce the likelihood of rate cuts by major central banks. Tech, consumer discretionary, banks, insurers, chemicals, pharma & healthcare, industrials, and transport & logistics all faced heavy selling pressure, falling between 4–6%. Travel stocks remained strained, with Lufthansa down 5.4%, hit by flight cancellations and soaring oil prices. Defense names, including Rheinmetall (-3.4%) also dropped, reflecting deep investor caution. Beiersdorf plunged nearly 20% after flagging a weaker-than-expected 2026 outlook.