DAX Up Nearly 1% As Stocks Extend Gains On Trade Deal Optimism

(RTTNews) - German stocks are notably higher on Thursday, extending gains from the previous session, thanks to rising optimism about trade following reports the US and EU are heading towards a deal that will see implementation of 15% tariffs on select European imports, as well as scrapping of some duties.

Investors, digesting a slew of earnings updates, are also awaiting the European Central Bank's monetary policy announcement due later in the day. The ECB is widely expected to hold rates after a series of reductions in the past months.

The benchmark DAX, which climbed to 24,514.20 earlier in the session, was up 221.51 points or 0.91% at 24,438.61 a few minutes ago.

Deutsche Bank is up 7% on strong earnings. The bank reported second-quarter profit of 1.49 billion euro, compared to prior year's loss of 143 million euros. Profit before tax was 2.42 billion euros, significantly higher than last year's 411 million euros. Looking ahead, for fiscal 2025, the bank continues to expect revenues of around 32 billion euros.

Deutsche Telekom is rising 3.6%. Siemens Healthineers and BASF are up 2.5% and 2.3%, respectively. Deutsche Post, Commerzbank, Bayer, Continental and Beiersdorf are up 1.6 to 2%.

Siemens Energy, Siemens, Porsche, Fresenius, Fresenius Medical Care, Qiagen and Brenntag are up 1 to 1.5%.

MTU Aero Engines is gaining about 1.3%. The company reported first-half net income of 513 million euros, up 78% from last year. Adjusted earnings per share was 8.76 euros, up 39%. Revenue was 4.20 billion euros, up 24%. Adjusted revenue was 4.14 billion euros, an increase of 21%.

MTU confirmed its guidance for fiscal 2025, which it raised in mid-June.

Deutsche Börse is down 0.65%, despite the company reporting third-quarter net income of 160 million euros or 0.87 euros per share from 61.6 million euros or 0.33 euros per share last year, helped by growth across most segments.

Infineon Technologies, Vonovia and RWE are down 1.2 to 1.4%. Allianz, E.ON and Heidelberg Materials are also down, though with less pronounced losses.

In economic news, Germany's GfK Consumer Climate Indicator slipped to -21.5 heading into August 2025 from -20.3 in the prior month, marking the lowest print since April.

The HCOB Germany Composite PMI edged down slightly to 50.3 in July 2025 from 50.4 in June, falling short of market expectations of 50.7, according to a preliminary estimate.

The manufacturing PMI edged up to 49.2 in July from 49 in June, falling short of market expectations of 49.5, while services PMI stabilized at 50.1 in July from 49.7 in the previous month, surpassing market expectations of 50, flash estimates showed.