FX.co ★ DAX Falls on Earnings, Fed Split, and Middle East Tensions

Frankfurt’s DAX 40 slipped 0.5% to 25,350 on Thursday as investors digested a heavy flow of corporate earnings, fresh macroeconomic data, rising tensions in the Middle East, and mounting uncertainty over the US interest-rate path following a split Federal Reserve decision.

Adidas led the declines, tumbling 16%. The sportswear group raised its revenue guidance but cautioned that elevated costs would continue to pressure earnings growth. Airbus also lost more than 2%. The aircraft maker posted solid second-quarter results but only reiterated its full-year targets, disappointing investors who had hoped for an upgrade.

Market sentiment was further dampened by renewed US airstrikes on Iran, launched in response to attacks on American forces across the Middle East. The escalation lifted oil prices and added to risk aversion.

On Wednesday, the Federal Reserve left interest rates unchanged. However, three FOMC members dissented in favor of a hike, underscoring divisions within the central bank and heightening uncertainty around the future policy trajectory.