DAX Snaps 6-Day Rally, Still Books Weekly Gain

The DAX 40 closed about 0.2% lower at 25,026 on Friday, snapping a six-day advance, after a volatile session marked by futures and options expiry. The focus remained on the Middle East following the signing of the memorandum of understanding between the US and Iran this week. Investors turned cautious amid the postponement of nuclear talks aimed at securing a lasting peace agreement in the Middle East, though negotiations are expected to resume soon. Mediators including Pakistan, Saudi Arabia and Turkey are due to meet in Egypt on Sunday. Among losers, Volkswagen dropped more than 4% and underperformed as it traded ex-dividend for the first time. In contrast, defense stocks saw increased demand, led by Rheinmetall (1.8%), Renk (1.5%), Hensoldt (1.5%). Also, automakers showed signs of recovery, with Mercedes-Benz Group surging 1,9%, on reports that the EU is preparing tariffs on Chinese plug-in hybrid vehicles. For the week, the index advanced about 1.6%.

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