Tuesday saw a rise in German stocks, thanks to unexpected growth in private sector activity throughout April. This improvement—mostly in the services sector—was documented in a preliminary survey.
Notably, the HCOB German Flash Composite Purchasing Managers' Index (PMI), which S&P Global oversees, experienced considerable growth. Increasing to 50.5 from March's 47.7, it achieved a ten-month high. This economic recovery certainly boosted investor morale.
Prospects of impending interest rate cuts from two substantial European financial institutions—the European Central Bank and the Bank of England—also played a role in fortifying investor sentiment.
The DAX, a benchmark German stock market index, also exhibited growth. It rose by 125 points or 0.7 percent, reaching 17,985. This comes after a 0.7 percent increase from the previous trading session.
In the software sector, SAP AG shares saw a significant surge of 4 percent. This jump occurred after a strong revenue increase from their Q1 cloud sales, which rose by 24 percent to 3.93 billion euro. The company maintained its financial outlook for the year 2024.
