-- (Corrects stock movement in the headline)
German equities retreated on Thursday, as the market assessed developments related to a potential US-Iran peace deal alongside a fresh batch of corporate earnings and trading updates.
At closing, the blue-chip DAX was 1.02% in the red.
Reuters reported that Washington and Tehran are moving toward a temporary arrangement to halt the current conflict, with sources indicating the proposed framework provides a path to end the fighting but leaves core points of contention for future negotiation. However, research firm Rystad Energy cautioned that a deal's impact on the physical oil markets will be "slower and more conditional than futures prices are currently pricing in."
Meanwhile, back home, the German construction sector experienced its steepest contraction in over a year in April, with the decline primarily concentrated in housing amid war-related delivery delays, growing input price pressures, and weaker demand. The S&P Global Germany Construction PMI Total Activity Index plunged to a 13-month low of 42.1 from 48 in March.
In corporate updates, shares of Henkel (HEN.F) climbed to the top spot of the index at 4.20%, after its first-quarter organic sales beat and a reiterated full-year 2026 outlook. The German chemical and consumer goods company's group sales reached 4.95 billion euros, up 1.7% on an organic basis versus 1.1% market forecast. Management still expects organic sales to rise 1% to 3% for the year, while adjusted EPS is forecasted to grow in the low to high single-digit percentage range at constant currency.
"A solid Q1 growth, with both Consumer Brands and Adhesives Technologies growth coming in ahead of expectations. FY26 revenue growth and adj. operating profit margin guidance is reiterated, in line with consensus. Meanwhile, acquisitions/divestment are now guided to have a low-single-digit positive impact (from neutral to slightly positive previously), with three deals already successfully closed," RBC Capital Markets said in a quick-take report.
On the other hand, Siemens Healthineers (SHL.F) lost 4.72% and was one of the trading day's worst performers, after the German medical technology company lowered its fiscal 2026 guidance after a fiscal second-quarter earnings miss. The company now expects full-year revenue growth of 4.5% to 5%, down from its previous forecast of 5% to 6%. It also revised its adjusted basic EPS outlook to 2.20 euros to 2.30 euros, compared with earlier guidance of 2.20 euros to 2.40 euros.