FRANKFURT (dpa-AFX) - Inflation and growth concerns, coupled with a lack of diplomatic progress in the Middle East, placed the Dax under significant pressure again on Friday. By the closing bell, the German benchmark index had shed 2.07 percent to finish at 23,950.57 points. In doing so, it slipped both below the 24,000-point threshold and its 200-day moving average, a key technical indicator for long-term trend analysis. Despite a recovery over the previous two days, the weekly loss stands at 1.6 percent. Oil prices rose sharply on Friday.

'Following the Ascension Day holiday rally, a hangover mood is increasingly setting in,' wrote market analyst Timo Emden. High expectations for the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping had initially supported share prices. 'After the summit, however, disappointment prevails over the lack of concrete progress in resolving the Iran conflict.'

The mid-cap MDax also felt the brunt of this sentiment on Friday, falling 1.66 percent to 31,365.17 points. The Eurozone's blue-chip EuroStoxx 50 index dropped 1.8 percent. Investors in the UK also had to contend with heavy losses. Conversely, Switzerland, where markets were closed the previous day for a public holiday, managed a marginal gain. In New York, the major indices were down between 0.9 and 1.1 percent at the time of the European close.

Technology and semiconductor stocks, which had performed well recently, suffered from profit-taking. In the Dax, shares of chipmaker Infineon lost 4.2 percent. Investors also cashed out of chip equipment supplier Aixtron in the MDax and wafer manufacturer Siltronic in the small-cap SDax.

Shares of building materials group Heidelberg Materials were the weakest performers in the Dax, tumbling 7.2 percent, primarily weighed down by economic concerns. In contrast, shares of reinsurer Munich Re defied the recent weakness, gaining 1 percent. Software giant SAP continued its recovery, rising 2 percent to claim the top spot on the Dax.

Quarterly results from mobile and TV provider Freenet were well received, with the shares gaining 3.9 percent as one of the top performers in the MDax. However, a significant decline in passenger numbers led to a 4.7 percent drop for airport operator Fraport./gl/he

--- By Gerold Löhle, dpa-AFX ---