DAX Finishes at Near 2-Week High

The DAX 40 pared gains to close marginally up at 24,910 on Tuesday, but still near a two-week high, marking the fourth session of advances. The prospect of a peace deal in Iran and the reopening of the Strait of Hormuz continued to support market sentiment. The memorandum of understanding is scheduled to be formally signed on Friday, leaving a 60-day window for negotiations toward a final agreement. Insurers and banks, as well as energy-sensitive industrials were among the top performers, while the tech sector and autos saw heavy pressure. GEA Group led gains, rising 5.1%, after Deutsche Bank raised its rating from Neutral to Buy. Münchener Rück, Hannover Rück and Allianz also advanced, gaining up to 1.3%, while Deutsche Bank and Commerzbank rose 0.6% and 0.3% respectively. Other top gainers included Qiagen NV, Deutsche Post, Siemens and Airbus. Onn the downside, automakers BMW and Mercedes-Benz Group dropped 5.2% and 2.8%, respectively, while Infineon Technologies shed 2.3%.

The DAX Index went up by 16 points or 0.07 percent on Tuesday to close at 24910 points. The rise was led by Gea Group (3.61%), Qiagen NV (1.53%) and Munich RE (1.36%). On the downside, the weakerst performers were Infineon (-1.81%), RWE (-1.67%) and Brenntag (-1.64%).

The DAX 40 shook off a hesitant start to cross the 25,000 mark on Tuesday, extending the previous session's rally, buoyed by the US-Iran framework agreement. Investors remain optimistic although they maintain some reservations, considering the advances and setbacks of the past. The memorandum of understanding is expected to be formally signed on Friday, when full details will be disclosed, while the Strait of Hormuz is set to reopen the same day. Attention was also on policy decisions by major central banks scheduled this week. Industrials and banks were among the top performers, while autos and tech saw pressure. GEA Group led gains, rising nearly 5%, after Deutsche Bank raised its rating from Neutral to Buy. Rheinmetall, Qiagen NV, Siemens, Siemens Energy and MTU Aero Engines also advanced solidly. Commerzbank rose 1.6% as the German government rejected UniCredit's hostile takeover bid, prioritizing the bank's independence and criticizing the Italian group's "aggressive" approach.