German equities extended gains on Tuesday, with the DAX rising 0.57% to 26,255 points by late morning, following a modest advance the previous session above the 26,000 threshold.
The MDax of mid-cap stocks climbed 0.66% to 32,242, while the Euro Stoxx 50 gained roughly 0.5%. Declining oil prices lent support to broader market sentiment, as Brent crude futures slipped further after U.S. Treasury Secretary Scott Bessent’s remarks failed to outline concrete measures to escalate pressure on Iran. Earlier, Washington had signaled a potential "economic war" against Tehran, threatening to isolate the country from global trade.
Germany’s August Ifo business climate index, the country’s leading economic barometer, improved for a second consecutive month, exceeding analyst expectations. The index’s upward trajectory suggests a gradual economic recovery despite lingering risks from the Iran conflict and recent drought conditions. The revision of Germany’s second-quarter GDP growth to 0.3% quarter-on-quarter—an increase of 0.1 percentage points from the initial estimate—reinforced the view of sustained economic expansion, marking the third consecutive quarter of growth.
Investor focus is turning to key events later in the week, including Nvidia’s quarterly earnings on Wednesday and Federal Reserve Governor Kevin Warsh’s speech at the Jackson Hole symposium on Friday. Semiconductor stocks showed signs of stabilization ahead of Nvidia’s report, with Infineon and Süss MicroTec advancing 2.4% each. The AI investment boom continued to gather pace, with UBS raising its global AI spending forecast for 2027 to $1.2 trillion.
Siemens Energy rebounded 2.2% after reports emerged that Goldman Sachs had been engaged to explore a potential sale of a majority stake in its steam turbine business. While the company has not confirmed the plans, industry estimates place the valuation at over €10 billion, which traders suggested could trigger a positive market reaction. Scout24 led gains in the DAX, surging more than 3% to its highest level since early February.
In the MDax, Deutz rallied over 8% after analysts at Kepler Cheuvreux and Oddo BHF significantly raised price targets, citing the engine manufacturer’s expanding defense business. Conversely, Gerresheimer shares fell 7% following the resignation of interim CEO Uwe Röhrhoff, raising concerns over leadership stability at the specialty packaging firm.
