Frankfurt gains 0.18% amid indirect US-Iran talks

The Frankfurt Stock Exchange closed with a modest gain of 0.18% on Wednesday, reaching 25,040.28 points. The market's movement was influenced by reports that the United States and Iran have initiated indirect discussions in Qatar.

US negotiators Jared Kushner and Steve Witkoff arrived in Qatar to meet with mediators. However, Iran's stance against direct engagement with US officials has tempered expectations for an immediate comprehensive peace agreement. Technical talks with mediators from Qatar and Pakistan have commenced, according to reports from CNN, Al Jazeera, and Al Arabiya.

Economic data released on Wednesday offered mixed signals for the German stock market. In the US, the private sector created 98,000 jobs in June, according to ADP data, but the ISM manufacturing purchasing managers' index for June declined. Within the Eurozone, annual inflation eased to 2.8% in June from 3.2% in May, primarily due to a drop in oil prices which lowered energy inflation to 8.7% from 10.8%. This decline in inflation has reduced expectations for an imminent interest rate hike by the European Central Bank (ECB).

Individual company performances varied significantly on the Frankfurt exchange. Defense contractor Rheinmetall saw a substantial increase of 6.1%, closing at 1,050.60 euros, recovering from a previous loss after the German government announced it was abandoning a six-frigate project. Software company SAP gained 5.1% to 140.88 euros, and real estate portal Scout24 advanced 3.4% to 74.80 euros. Conversely, semiconductor manufacturer Infineon dropped 4.6% to 77.90 euros, and Siemens lost 2.7% to 273.45 euros. Construction firm Hochtief, controlled by ACS, fell 2.1% to 496.40 euros.