The DAX 40 closed about 0.4% lower at 26,339 on Monday, giving back the previous session's advance while staying close to record highs. Risk appetite was checked by rising Middle East tensions as the 60-day Washington-Tehran truce expired and the dispute over Hormuz continued, with threats from both sides intensifying. Investors were also recalibrating their outlook for U.S. interest rates after a run of weaker-than-expected economic data. Selling was concentrated in retail and auto names, while technology and financial stocks offered some support. Zalando, Adidas, Scout24, Beiersdorf, Henkel and Symrise led decliners with losses of 1.9% to 3.4%, while Deutsche Borse rose 1.8%, Rheinmetall gained 1.3%, Siemens Energy added 1.1% and Infineon Technologies climbed 0.9%.