DAX Modestly Higher Despite Paring Some Early Gains

(RTTNews) - German stocks hold on in positive territory Tuesday afternoon despite paring some early gains. Data showing an acceleration in Germany's private sector activity in the month of September, and an increase in Eurozone service sector growth help underpin sentiment.

The benchmark DAX, which climbed to 23,730.83 earlier in the session, was up 77.88 points or 0.33% at 23,614.35 a little while ago.

Infineon Technologies is gaining 3.6%, Adidas is up 2.7% and Volkswagen is rising 2.5%, while Porsche Automobil Holding, GEA Group, Brenntag and Fresenius Medical Care are up 2 to 2.2%.

Daimler Truck Holding, Vonovia, Siemens Energy, MTU Aero Engines, Continental, Mercedes-Benz, Deutsche Post, Symrise, Deutsche Bank and Siemens are advancing 1 to 1.8%.

Heidelberg Materials, Commerzbank and Rheinmetall are down 1.3 to 1.4%. Deutsche Boerse, Qiagen and Munich RE are down with moderate losses.

Germany's private sector growth hit a 16-month high in September on a renewed upturn in the service sector, flash survey results from S&P Global revealed on Tuesday.

The HCOB composite output index rose to 52.4 in September, while it was expected to remain unchanged at 50.5.

The reading stayed above the 50.0 threshold for a fourth straight month and signaled the quickest expansion in the private sector since May 2024.

The stronger performance reflected a renewed increase in the service sector business activity that followed a slight decrease in August. The services Purchasing Managers' Index rose to an eight-month high of 52.5 from 49.3 in the previous month. The reading was also above forecast of 49.5.

By contrast, the factory PMI declined to 48.5 from 49.8 in the previous month. The reading was seen at 50.0.

The HCOB Flash Eurozone Composite Purchasing Managers' Index, compiled by S&P Global, edged up to 51.2 in September from 51.0 in August, marking the ninth consecutive month of growth but new orders stagnated after briefly expanding in August.

While the services sector pulled up business activity, the manufacturing sector slumped back into contraction, clouding the outlook.