DAX Notably Lower As Middle East Tensions Weigh On Sentiment

(RTTNews) - Despite some upbeat earnings updates from big-name companies in Europe, German stocks shed ground on Wednesday, hurt by escalating Middle East tensions and higher bond yields.

The yield on Germany's 10-year bond rose to 3.172% before easing to 3.156%, still up 0.012% from previous closing level.

Brent crude futures climbed to $86.55 a barrel. Despite easing to $85.21 a barrel, the contract was up nearly 0.6% a little while ago.

The benchmark DAX, which dropped to 24,834.43 earlier, was down 195.75 points or 0.78% at 24,948.63 a few minutes before noon.

U.S. forces resumed the naval blockade against vessels transiting to and from Iranian ports and coastal areas, and President Donald Trump threatened to hit energy targets in Iran, deepening fears of a wider supply disruption.

U.S. forces will intensify their campaign in the coming days, targeting power plants and bridges if Iran refuses to sign a deal with Washington, Trump was quoted as saying by Fox News.

Iran's IRGC warned of targeting oil routes for U.S. allies after launching a pre-dawn strike on the U.S. AI-Azraq Air Base in Jordan.

Missile alert warnings went out in Bahrain and Kuwait early today as they faced incoming Iranian fire.

Fresenius Medical Care dropped more than 2.5%. Infineon Technologies and Commerzbank lost 2.3% and 2%, respectively. Bayer shed nearly 2%.

Zalando, BASF and Rheinmetall lost 1.6%-1.8%. MTU Aero Engines, Beiersdorf, Vonovia, Brenntag, Deutsche Telekom, SAP, Hannover RE and Allianz drifted down 0.6%-1.1%.

Shares of food-delivery company Delivery Hero declined sharply after the group said it was in advanced negotiations with Uber Technologies regarding a potential takeover offer.

Hochtief climbed 2.3%. Fresenius, Heidelberg Materials, E.ON, Merck and Daimler Truck Holding gained 0.5%-0.7%.