BRUSSELS (dpa-AFX) - German stocks drifted lower Tuesday morning as worries about inflation resurfaced after oil prices climbed up amid concerns about the conflict in the Middle East despite U.S. President Donald Trump's decision to postpone potential strikes on Iran's energy infrastructure for five days.
A survey showing a sharp drop in Eurozone private sector growth in the month of March hurt as well.
However, with stocks finding some support at lower levels, the market pared early losses and moved above the flat line around late morning.
Brent crude futures rose above $104 a barrel before easing a bit to around $102, still notably up from previous close, amid reports of huge explosions in Tehran and other cities. Iran has denied it held talks with the U.S. to end the war.
Iran's foreign ministry said Trump's remarks were 'part of efforts to reduce energy prices and buy time' for military plans.
Meanwhile, Israeli Primer Minister Benjamin Netanyahu said that the country is continuing strikes against Iran and Lebanon continue without pause.
The German benchmark DAX, which fell to 22,405.95, recovered to 22,736.45, and was up 12.89 points or 0.06% at 22,608.14 a little while ago.
SAP dropped by about 3.7%. Bayer drifted down 3.2% and Infineon Technologies lost about 2.3%. Rheinmetall, MTU Aero Engines, Heidelberg Materials, Continental, Deutsche Bank and Siemens lost 0.7%-1.3%.
Shares of automakers BMW, Mercedes Benz and Volkswagen moved higher, lifted by data showing a recovery in Europe's new car registrations in the month of February, thanks to higher demand for battery electric and plug-in hybrid cars. However, the stocks gave up early gains due to lack of support at higher levels.
Brenntag climbed about 2.5%. Zalando and BASF gained 2% and 1.7%, respectively. Deutsche Telekom, Deutsche Boerse, Beiersdorf, Fresenius Medical Care and Symrise posted moderate gains.
Data from S&P Global showed the S&P Global Flash Germany PMI Composite PMI fell to 51.9 in March from 53.2 in February, compared to forecasts of 52. Germany's private sector activity fell to its lowest level in three months in March, with the Services PMI coming in at 51.2, down from 53.5 a month earlier. Meanwhile, manufacturing PMI climbed to a four-year high of 53.7 in March, rising from 52.5 in February.
The S&P Global Eurozone Composite PMI declined to 50.5 in March, down from 51.9 in February and below market expectations of 51.0, according to preliminary data.
The S&P Global Eurozone Manufacturing PMI rose to 51.4 in March 2026 from 50.8 in February, better than forecasts of 49.4, flash estimates showed. The S&P Global Flash Eurozone Services PMI fell to 50.1 in March 2026 from 51.9 in February, below forecasts of 51.1.
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