Frankfurt's DAX 40 declined 0.5% to 25,350 on Thursday as investors assessed a wave of corporate earnings, fresh economic data, escalating tensions in the Middle East, and growing uncertainty over the US interest rate outlook following a divided Federal Reserve decision.
Adidas led losses, plunging 16% after the sportswear maker raised its revenue guidance but warned that higher costs would continue to weigh on earnings growth.
Airbus also fell more than 2%, despite reporting strong second-quarter results, after the aircraft manufacturer merely reaffirmed its full-year targets.
Meanwhile, renewed US airstrikes on Iran in response to attacks on American forces across the Middle East lifted oil prices and weighed on market sentiment.
On Wednesday, the Federal Reserve kept interest rates unchanged, though three FOMC members dissented in favor of a rate hike, adding to policy uncertainty.