FRANKFURT (dpa-AFX) - The Dax ended Thursday with a sharp downturn after a long period of directionless trading. Pulled down by the weak US benchmark Dow Jones Industrial, its German counterpart ultimately lost 1.61 percent to close at 23,815.75 points. As a result, the Dax is now again trading below the crucial 200-day moving average, a key indicator for long-term trends. Given the uncertain situation in the Middle East, investors ultimately remained on the sidelines. The MDax of mid-cap stocks finished 2.20 percent lower at 29,688.96 points.

The Eurozone benchmark index, the EuroStoxx 50, also fell by 1.5 percent. Similar losses were recorded in London and Zurich. By the close of European trading, the New York Dow was down 1.6 percent, while the tech-heavy Nasdaq 100 slipped by just 0.5 percent.

"Investors remain concerned that the war in the Middle East could escalate at any moment," wrote market analyst Andreas Lipkow of broker CMC Markets. "Rumors and speculation are reaching the financial markets and making the situation increasingly opaque. This is fueling uncertainty and leading to falling stock prices."

Meanwhile, the corporate earnings season is in full swing. Shares in DHL dropped 4.6 percent after the logistics giant issued a cautious outlook. At chemicals and pharmaceuticals group Merck, an expected profit decline for the current year triggered an 8 percent drop, placing it at the bottom of the Dax.

At the bottom of the MDax, Renk shares plunged 11.4 percent after reporting its figures. In the wake of the defense stock, shares of sector peers Hensoldt and Rheinmetall fell by 8.7 and 5.6 percent, respectively.

In contrast, sportswear makers Adidas and Puma posted gains of 2.3 and 4.5 percent, respectively, securing top spots in the Dax and MDax. At Puma, a transaction by British billionaire and investor Michael Ashley provided momentum. Specifically, this involved the sale of financial instruments (so-called short puts) which, upon maturity, represent about 5.6 percent of Puma's voting rights, according to a voting rights notification. Another notification revealed that Adidas CEO Björn Gulden took advantage of his company's recent share price weakness—which had pushed the stock to its lowest level since early 2023—to buy shares.

In the SDax small-cap index, GFT Technologies soared to the top with a 13 percent gain, thanks to strong business figures from the software developer./gl/jha/

--- By Gerold Löhle, dpa-AFX ---