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DAX firms launch record €54.6B share buybacks amid economic gloom and Iran tensions

Germany's corporate giants are betting big to prop up stock prices—but can buybacks outshine geopolitical risks? The DAX's fragile rebound hangs in the balance.

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2 min read
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The image shows a black background with text that reads "Forecasting vs Predicting: Predicting is about certainty, and forecasting is about appreciating uncertainty." This text is likely referring to the concept of forecasting and predicting, which is the process of making decisions based on the uncertainty of the world.

DAX firms launch record €54.6B share buybacks amid economic gloom and Iran tensions

Germany's economic outlook has darkened in recent weeks, with businesses growing more pessimistic about their future. The ongoing Iran conflict has added further strain, dragging down market confidence. Yet, a potential U.S. push for de-escalation has brought a glimmer of hope to investors.

Against this backdrop, the DAX is reacting to mixed signals—economic uncertainty on one side and political developments on the other. Share prices have shown signs of recovery, but underlying concerns remain.

The ifo Business Climate Index reveals a broad decline in expectations across key sectors. Companies are bracing for tougher conditions, reflecting a wider slowdown in Germany's economy. The Iran conflict has only deepened these worries, creating a clear drag on sentiment.

At the same time, major DAX-listed firms are taking bold steps to shore up their stock prices. In the last four weeks of March 2026 alone, companies like **SAP**, **Deutsche Post/DHL Group**, **Siemens**, and **Siemens Energy** announced or launched record share buybacks. **SAP** leads with a 10-billion-euro programme, while **Deutsche Post/DHL**, **Siemens**, and **Siemens Energy** each committed 6 billion euros. Combined, these repurchases total 54.6 billion euros, with 26 billion euros earmarked for 2026. The move comes as the DAX struggles with an 8% drop since the start of the year. By reducing the number of shares in circulation, firms aim to support prices amid geopolitical pressures. The prospect of easing tensions in the Iran conflict has also lifted risk appetite, helping prices rebound during recent trading sessions.

The DAX remains caught between economic headwinds and political shifts. While share buybacks are hitting historic highs, their impact will depend on broader market conditions. Any progress in de-escalating the Iran conflict could further stabilise investor confidence—but for now, businesses continue to face a challenging environment.

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