German Stocks at Nearly 2-Week High

The DAX Index rose 195 points or 0.77 percent on Tuesday to close at 25449 points. Leading the gains are Continental (2.81%), Brenntag (2.56%) and Henkel (2.32%). Top losers were Rheinmetall (-3.41%), Deutsche Telekom (-1.57%) and MTU Aero Engines AG (-1.00%).

The DAX closed 0.8% higher at 25,449 on Tuesday, extending gains for a third consecutive session and reaching its highest level in around two weeks. The index tracked a broadly positive mood across European and US markets, supported by lower oil prices and bond yields. Concerns over France’s fiscal position remained a headwind for the broader market, however, alongside political uncertainty surrounding a snap election in Spain. Expectations for further ECB rate hikes have also receded, with markets now pricing in a nearly 80% probability of another rate increase by the end of the year. SAP (2.2%), Infineon (1.9%), Siemens (1.5%) and Siemens Energy (1.4%) posted strong gains, while Rheinmetall (-2.8%) was the worst performer on the DAX.

Frankfurt’s DAX 40 opened 0.6% higher to above 25,400 on Tuesday, rising for a third consecutive session as gains in major US technology stocks and easing oil prices lifted global equities. Markets are also focused on a series of economic releases, with German industrial orders falling 10.6% in August, far more than the 1% decline expected. Construction PMI is due later in the day, while investors will also watch comments from ECB Governing Council member Olli Rehn on the economy and monetary policy. Concerns over France’s budget position remain a headwind on the broader market, however, after pushing the euro to a 17-month low. On the corporate side, Merck led the gainers, climbing 3.79%, followed by Qiagen NV (3.40%) and Henkel (1.67%). On the downside, Daimler Truck Holding fell 1.07%, while Rheinmetall and Beiersdorf slipped 0.53% and 0.34%, respectively. Porsche is also in focus as the automaker holds a media day.