BRUSSELS (dpa-AFX) - The German stock market's benchmark DAX fell to a three-month low Tuesday morning as investors continued to exit counters amid falling risk appetite due to escalating tensions in the Middle East.
Rising concerns about inflation, and U.S. President Donald Trump's comments that the conflict could last about four to five weeks, and that the U.S. has the 'capability to go far longer than that', significantly weigh on sentiment.
A prolonged conflict in the Middle East and a persistent fall in oil and gas supplies from the region could cause a 'substantial spike' in inflation and a 'sharp drop in output' in the euro zone, ECB chief economist Philip Lane has warned in an interview with the Financial Times.
The DAX was down 909.68 points or 3.69% at 23,762.72 a little while ago.
Beiersdorf, the biggest loser in the benchmark index, is down as much as 17%. The stock is down following the company flagging a softer 2026 outlook citing cost and foreign exchange pressures.
Siemens Energy, Infineon Technologies, Deutsche Bank, Bayer, Allianz, BASF, Vonovia, Continental and Commerzbank are down 4%-6%.
Daimler Truck Holding, RWE, Deutsche Post, Munich RE, Brenntag, Hannover Rueck, Heidelberg Materials, Volkswagen, Henkel, Fresenius, E.ON, Symrise, BMW, SAP, Mercedes-Benz, Adidas, Gea Group, Merck and Porsche Automobil Holding are tumbling by 2%-4%.
Bucking the trend, Fresenius Medical Care and Deutsche Boerse have moved higher, gaining 1.1% and 2.7%, respectively.
In economic news, data from Eurostat said the annual inflation in the Euro Area rose to 1.9% in February 2026, up from January's 16-month low of 1.7% and above market expectations of 1.7%, according to a preliminary estimate.
Among the bloc's largest economies, the Harmonised Index of Consumer Prices (HICP) accelerated in France (1.1% from 0.4%), Spain (2.5% from 2.4%) and Italy (1.6% from 1.0%), while easing slightly in Germany (2.0% from 2.1%).
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