DAX Hovers Near Record Highs

Frankfurt's DAX 40 maintained a solid advance on Tuesday, paring earlier gains but remaining close to record highs above 25,500. The further decline in oil prices, along with hopes for peace in Iran and the rebound in tech stocks after last week's slides, continued to support European markets. Meanwhile, traders weighed stronger-than-expected US inflation data and hawkish remarks from Federal Reserve Governor Christopher Waller, which raised expectations for a potential Fed's 50 bps hike in December. Most sectors traded higher, led by banks, tech and insurers. Among infidvidual stocks, Henkel led gains, climbing more than 4%, as the company lifted its 2026 outlook after strong Q3 growth. Other top performers included Daimler Truck, Deutsche Bank, Hannover Re, MTU Aero Engines, Airbus and Munchener Re, rising between 2%-3%. Infineon Technologies added 2.1% after reporting record Q4 and full-year 2026 results and issuing an upbeat revenue outlook for the coming year.

Frankfurt's DAX 40 rose over 1% to around 25,550 on Tuesday, nearing record levels seen in August and extending previous session's advance. Investor sentiment strengthened further, underpinned by the ongoing recovery in global technology stocks following last week’s selloff and the continued decline in oil prices. Attention nevertheless remained centred on the corporate earnings season. Most sectors traded higher, led by tech, banks and industrials. Among single stocks, Infineon Technologies surged as much as 7% after reporting record results for the fourth quarter and full fiscal year 2026, while also issuing an ambitious revenue forecast for the coming year. Other notable performers included Rheinmetall, MTU Aero Engines, Continental, Daimler Truck and Siemens Energy, with gains ranging between 2%-4.5%. Deutsche Bank and Commerzbank added around 2% each. Lufthansa advanced 1.7%, benefiting from lower oil prices.

The DAX Index is gaining 272 points or 1.04 percent on Tuesday. Leading the gains are Infineon (5.16%), Rheinmetall (4.75%) and MTU Aero Engines AG (2.87%).