European Stocks Decline as Iran Tensions and German Inflation Weigh on Markets: DAX, CAC, FTSE100

European equity markets moved lower on Tuesday as fading optimism over a potential peace agreement between the United States and Iran dampened investor sentiment, while fresh inflation data from Germany added to concerns over rising energy costs linked to the conflict.

U.S. President Donald Trump said the fragile ceasefire between Washington and Tehran was on “massive life support,” casting doubt on the prospects for a durable resolution.

Meanwhile, final data from Germany’s statistics office Destatis showed that annual consumer price inflation accelerated to 2.9% in April from 2.7% in March. The figure matched preliminary estimates released on April 29 and marked the highest inflation reading since December 2023.

The increase was largely driven by another rise in energy prices tied to the ongoing Iran conflict.

Major European Indexes Trade Lower

Germany’s DAX index declined 1.2% during the session, while France’s CAC 40 fell 0.7%. In London, the FTSE 100 slipped 0.4%.

Salzgitter and Jenoptik Rally After Strong Updates

Shares in Salzgitter (TG:SZG) surged 6% after the steelmaker raised its fiscal 2026 earnings outlook following improved first-quarter results.

Technology company Jenoptik (BIT:1JEN) jumped 10% after reporting a 74% increase in first-quarter order intake.

Douglas and Munich Re Decline

Beauty retailer Douglas (TG:DOU) fell 3.7% after posting a wider second-quarter loss linked to impairment charges.

Reinsurance group Munich Re (TG:MUV2) dropped 4.6% after disclosing private credit investments of up to €2.5 billion ($2.9 billion).

Bayer Gains While Siemens Energy Slips

Bayer (TG:BAYN) advanced 6.2% after reporting stronger first-quarter earnings, supported by solid performance in its crop science division.

Meanwhile, Siemens Energy (TG:SIE) declined 1.6% despite increasing its fiscal 2026 guidance.

Imperial Brands Rises as Vodafone and Wizz Air Fall

Imperial Brands (LSE:IMB) gained 1.2% after the tobacco group maintained its full-year outlook following stronger adjusted earnings and solid cash generation during the first half of 2026.

Vodafone (LSE:VOD) fell 3% after the telecom operator reported customer losses in its core German market during the previous quarter.

Budget carrier Wizz Air (LSE:WIZZ) dropped nearly 2% after stating that it expects earnings for fiscal 2025/26 to range from break-even to slightly positive.