German equities advanced on Wednesday afternoon, with the DAX gaining 0.48% to 26,391 points, nearing its record high of 26,574 points. The MDax of mid-cap stocks rose 0.99% to 32,586 points, while the Euro Stoxx 50 climbed 0.5%.
Falling oil prices provided support, easing inflation concerns and lifting shares sensitive to energy costs. Brent crude futures dropped more than 3% to around $72 per barrel, extending a recent decline. The U.S. personal consumption expenditures price index for July, the Federal Reserve’s preferred inflation gauge, rose slightly more than expected, though the data had minimal immediate impact on European markets.
SAP, a heavyweight in the DAX, weighed on the index after UBS withdrew its buy recommendation, sending the software giant’s shares down 3.7%. Analyst Michael Briest of UBS noted the stock appears reasonably valued, but investor sentiment remains fragile. In contrast, Deutsche Bank shares surged 5.3% to their highest level since 2014, supported by strong second-quarter results and a favorable banking environment, according to LBBW.
Qiagen shares climbed 2.2% following reports that private equity firms EQT and KKR were in talks to acquire the diagnostics company at $50 per share. E.ON gained 1.5% after Berenberg upgraded its rating from ‘Hold’ to ‘Buy’, citing attractive entry points in the utility’s growth and yield potential within Germany’s power grid.
In the MDax, airline stocks Lufthansa and Fraport benefited from lower oil prices, while industrial names Salzgitter and Aurubis advanced alongside rising base metals. Salzgitter led gains with a rise of more than 7%, extending its recent rally.
Investor focus now shifts to Nvidia’s quarterly results, due after U.S. markets close, amid heightened scrutiny of demand for AI chips and the pace of infrastructure investments. Capital market strategist Jürgen Molnar of RoboMarkets noted that Nvidia’s report would serve as a key health check for the broader AI boom.
