DAX Finishes at Over 2-Week High

The DAX closed about 0.4% up at 25,027 on Thursday, the highest since early June and extending gains for the sixth successive session. Optimism surrounding the US-Iran agreement outweighed hawkish signals from new Fed Chair Kevin Warsh. The US formally signed an interim agreement with Iran that paves the way for an end to the Middle East conflict and the reopening of key energy export routes. Oil prices pulled back, reflecting easing inflation concerns. Tech companies, industrials and travel stocks were the top performers. Infineon Technologies led gains among equities, surging 6.4%. Siemens Energy advanced 4.5% following reports that the company is considering divesting its multi-billion-euro compressor and steam turbine business. Airline Lufthansa also performed strongly, adding 3.2%. On the flip side, automakers and software companies faced strong pressure.

The DAX Index rose 92 points or 0.37 percent on Thursday to close at 25027 points. Leading the gains are Infineon (7.14%), Siemens Energy (4.70%) and MTU Aero Engines AG (3.39%). Top losers were SAP (-4.80%), Mercedes-Benz AG (-4.52%) and BMW (-4.02%).

The DAX 40 edged up to cross the 25,000 mark on Thursday, the highest since early June and extending gains for the sixth successive session. Signs of progress toward ending the Iran war outweighed concerns about the hawkish tone from the US Federal Reserve. The US and Iran signed an interim peace agreement that extends a ceasefire announced in April by another 60 days, to allow the two sides to negotiate a final truce. A cornerstone of the agreement is the full resumption of shipping through the Strait of Hormuz, free from any additional charges, which prompted a fresh pullback in oil prices. Meanwhile, the Federal Reserve left interest rates unchanged, but new Fed Chair Kevin Warsh signaled that a rate hike could be considered if inflationary pressures persist. Techs and energy-sensitive industrials were the standout performers. Infineon Technologies led the way, climbing over 4%. It was followed by Airbus (2.6%), Siemens Energy (2.2%), Siemens (1.4%) and Rheinmetall (0.9%).