Frankfurt's fell over 0.5% to trade below 24,100 on Tuesday afternoon, in line with most European peers, amid continued pressure from defense stocks. Rheinmetall (-5.9%), Hensoldt (-4.7%) and Renk (-3.4%) posted further losses following the latest Berlin talks on ending the war in Ukraine, with negotiators describing the discussions as progress, particularly regarding security guarantees for Ukraine in the event of a ceasefire. Meanwhile, mixed US labor data reinforced bets of further cuts by the Federal Reserve. In the meantime, manufacturing and services picture worsened in the Eurozone and Germany. Nevertheless, investor sentiment in Germany improved more than expected in December, according to the ZEW institute's survey.