German equities advanced on Tuesday, with the DAX gaining 0.30% to 26,184 points in early trade, extending gains from the previous session where it held above the 26,000-point mark. The MDax of mid-cap stocks rose 0.33% to 32,137 points, while the Euro Stoxx 50 climbed 0.3%. Investor caution remained elevated as markets brace for key events later this week, including Nvidia’s quarterly results on Wednesday and remarks by U.S. Federal Reserve Governor Kevin Warsh at the Jackson Hole symposium on Friday.
Oil prices declined, providing support to equity markets. Brent crude fell 1.2% to $78.80 per barrel after U.S. Treasury Secretary Scott Bessent’s Monday speech offered no new measures to intensify pressure on Iran, despite earlier threats of a potential 'economic war' aimed at isolating Tehran from global trade. The geopolitical backdrop continues to weigh on risk sentiment, though the immediate market reaction to Bessent’s remarks was limited.
Germany’s closely watched Ifo business climate index, due later in the morning, is expected to rise further, according to Landesbank Helaba economists. While the index is forecast to improve from prior levels, it is still projected to remain below the February reading recorded before the escalation in the Middle East conflict. 'The improvement in German business sentiment is encouraging, but there is no cause for excessive optimism,' the bank noted.
Chip stocks showed signs of recovery ahead of Nvidia’s earnings, with Infineon and Süss Microtec gaining between 2% and 3%. The AI investment theme continued to drive sentiment, with UBS raising its global AI spending forecast for 2027 to $1.2 trillion. Siemens Energy advanced 1.4% after reports emerged that Goldman Sachs has been engaged to explore a potential sale of a majority stake in the company’s steam turbine business. The deal, valued at over €10 billion, could draw significant investor interest if pursued.
Industrial names also posted gains, including Deutz, which surged 7.5% after Kepler Cheuvreux and Oddo BHF upgraded their price targets, citing the company’s expansion into defense alongside its traditional engine business. On the downside, Qiagen shares extended losses, falling nearly 1% and threatening to break a multi-month uptrend that began in May. Dermapharm confirmed first-half results and reiterated its 2026 guidance, though the stock saw modest selling pressure. Gerresheimer slumped 6.5% after interim CEO Uwe Röhrhoff announced his resignation.
