BRUSSELS (dpa-AFX) - German stocks fell on Tuesday, weighed down by escalating U.S.-Iran tensions, higher crude oil prices and rising bond yields.
The 60-day ceasefire agreement has expired and Washington has rejected an extension. Meanwhile, Iran has warned of a strong response, saying its is preparing to shift to a 'fully offensive' military posture.
Brent crude futures (up marginally at $90.98 a barrel) rose to $91.85 a barrel before paring gains.
The yield on Germany's 10-year bond climbed to 3.2533, up 1.1% from previous close.
The benchmark DAX, which fell to 26,153.50 earlier, was down 151.59 points or 0.56% at 26,218.07 about half an hour before noon.
Infineon Technologies tumbled 4.2%. Siemens Energy fell 3.1%, while Siemens, Heidelberg Materials, RWE, Hochtief, Airbus, Continental and MTU Aero Engines shed 0.8%-1.5%.
Deutsche Telekom climbed 1.8%. Deutsche Post, Fresenius Medical Care, Bayer, Deutsche Boerse, BASF and Daimler Truck Holding lost 0.5%-1.2%.
A report from the European Economic Research (ZEW) said Germany's ZEW Indicator of Economic Sentiment rose 7.9 points to 34.2 in August, following a 15.8-point jump in July and comfortably beating market expectations of 30. The reading marked the highest level since February, before the Middle East conflict weighed on global confidence, suggesting that Germany's reform package is beginning to support the economic outlook.
The assessment of the current situation also improved, with the index rising 16.5 points to -61.1, while inflation expectations dropped 13.1 points to 1.8.
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