DAX Gains Ground

Frankfurt's DAX 40 extended initial gains, rising 0.7% to cross 25,500 on Tuesday afternoon, mainly driven by tech stocks, while declining oil prices also provided support. Market sentiment remains largely influenced by developments in the Middle East. Indirect talks between US and Iranian officials continued through mediators, but Iranian officials privately questioned whether a ceasefire deal could be reached before the November midterm elections. The tech sector was the standout performer, amid expectations that continued massive AI investment will support long-term chip demand. The upcoming White House AI summit also likely played a significant role. Chipmaker Infineon Technologies and AI-related Siemens Energy climbed 5.3% and 4.2%, respectively, Industrials, banks, retailers and autos also posted solid gains, while pharmaceuticals, telecom and utilities lagged. Bayer (-2.9%) and Fresenius Medical Care (-1.6%) fell the most following downgrades of their shares.

Frankfurt's DAX 40 rose 0.4% to surpass 25,400 after a hesitant start on Tuesday, tracking modest gains among its European peers. However, caution prevailed amid rising oil prices and high bond yields as US-Iran negotiations still appear to be at a standstill. Iranian officials have privately expressed pessimism about the possibility of reaching an agreement with Washington before the US midterm elections in November, according to Bloomberg. The tech sector led gains, with chipmakers among the best performers. Infineon Technologies and AI-related Siemens Energy climbed 3.6% and 3%, respectively, following a Reuters report that Anthropic is betting on AI to transform the global economy and plans to use public investors to fund its growth. Banks and industrials also advanced firmly, while utilities and pharma & healthcare stocks lagged. Fresenius Medical Care fell 2% to the bottom of the index after Berenberg slashed its price target from €60 to €42 and withdrew its buy recommendation.

The DAX Index is picking up 66 points or 0.26 percent on Tuesday. Gains are led by Infineon (2.00%), Siemens Healthineers (1.49%) and Siemens (1.24%). Biggest losers are Fresenius Medical Care (-1.93%), E.ON (-1.22%) and Bayer (-1.20%).