DAX Falls 1.1% as Middle East Oil Spike, AI Valuation Fears Weigh on European Stocks

Germany's DAX index dropped 1.1% to 25,354.16 overnight from a previous close of 25,645.04, as escalating Middle East tensions drove crude oil prices higher and concerns over elevated AI valuations weighed on sentiment across European markets. Only 13 of the index's 40 constituents traded higher. Qiagen led gainers at 5.4%, while Merck and Zalando each rose more than 1%. Siemens Energy posted the steepest decline at 3.6%, followed by Infineon Technologies, down over 3%, and Siemens, down 2.4%. The dollar weakened amid soft U.S. economic data and expectations of a Federal Reserve pause, with the Dollar Index down 0.14% to 101.64. Ten-year German bund yields fell to 3.3691% from 3.4157. Flash Euro Area consumer confidence data due Thursday morning is expected to show further weakening in October.