Investors on the German stock market remained cautious at the end of the week. Upcoming negotiations to end the Iran conflict and key inflation figures from the US prompted restraint, with the Dax trading virtually flat at 23,830 points on Friday morning. "The situation in the Middle East remains critical. The ceasefire is rather fragile and the Strait of Hormuz remains blocked," summarized IG market analyst Christian Henke. Investors looked nervously toward the upcoming peace talks between the US and Iran in the Pakistani capital, Islamabad.

Furthermore, the anticipated US inflation data could prove pivotal. Experts expect the rate to have risen given the impact of the war. Should the increase exceed expectations, it would intensify discussions regarding central bank interest rate hikes and thus weigh on equity markets, said portfolio manager Thomas Altmann of asset manager QC Partners.

Among the Dax gainers, Adidas and Infineon led the pack with gains of 0.7 percent each, while Commerzbank and Bayer shares trailed the index with losses of 1.1 percent each.

(Report by Anika Ross, edited by Philipp Krach. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)