FX.co ★ DAX Gains Further Ground

Frankfurt's DAX index saw significant gains on Tuesday, climbing over 2% and outperforming other markets, driven by strong fiscal initiatives and positive economic indicators. The German government has approved draft budgets that allocate €115.7 billion for investment in 2025 and €123.6 billion in 2026, a notable increase from the €74.5 billion allocated for 2024, all aimed at boosting economic growth. Additionally, plans are reportedly in place to elevate defense spending to 3.5% of GDP by 2029, in preparation for an important NATO summit on defense expenditure that begins today. On the economic data side, the Ifo business climate index for Germany rose to 88.4 in June, surpassing expectations of 88.2 and marking an improvement from 87.5 in May. Concurrently, President Trump announced a ceasefire between Israel and Iran, which alleviated immediate concerns about energy supply stability, though tensions persist due to Israel's accusations of Iran violating the terms. The standout performers on the Frankfurt market were Heidelberg Materials, Siemens Energy, and Deutsche Bank, which recorded gains ranging from 3.9% to 6.7%. Stocks in the airline and automobile sectors also experienced upward movement.