Germany's DAX index fell 1.1 percent on Thursday, closing at 23,807 points. Investors are wary of the fragile two-week ceasefire in the Iran war and Israeli airstrikes in Lebanon. US Federal Reserve minutes are also weighing on sentiment.
Following a strong gain on Wednesday, sentiment soured at Germany's stock market. The DAX surged 5.1 percent to 24,080 points yesterday, buoyed by the announced ceasefire. It closed 1.1 percent lower at 23,807 points today.
The ceasefire in the Iran war appears fragile. Despite the agreement, heavy Israeli airstrikes hit Lebanon on Wednesday and Thursday. The Strait of Hormuz, vital for oil and gas shipping, remains impassable for most vessels.
Minutes from the Federal Reserve's latest meeting indicate a growing number of members view a rate hike as necessary to curb inflation. The key rate was held at 3.50 to 3.75 percent in March.
Oil prices rebounded slightly after a sharp drop the previous day. Brent for June delivery stood at 96 US dollars per barrel at Thursday's close, up about two percent.
