On Tuesday, Frankfurt's DAX index showed a robust advance of 1.8%, reaching close to 23,700 points, outpacing its European counterparts. This surge was driven by a de-escalation in geopolitical tensions following President Trump's announcement of a ceasefire agreement between Iran and Israel. This news brought down oil prices, alleviating concerns about potential disruptions to the Strait of Hormuz.
Attention is now turning to The Hague, where NATO members gather for a critical summit focused on defense expenditures, and to Washington, where Federal Reserve Chair Jerome Powell is poised to make highly anticipated statements.
In the business sector, there was a notable uptick in the demand for stocks within the airline, automotive, banking, and technology industries. Deutsche Lufthansa experienced a significant rise of 6.8%, while Mercedes-Benz Group saw an increase of 3.2%. BMW, Porsche, and Volkswagen also enjoyed early gains. Banking giants Commerzbank and Deutsche Bank advanced by 1.5% and 2.9%, respectively, with Infineon Technologies climbing 3.6%. Conversely, stocks in the defense sector saw declines, with Hensoldt dropping 4.1%, Rheinmetall decreasing 3.9%, and Renk falling 3.5%.
