DAX Up Over 0.5% In Cautious Trade

(RTTNews) - German stocks are up in positive territory on Tuesday amid easing concerns about tariffs, and in reaction to the widely expected interest rate cut by the People's Bank of China. The UK-EU agreement reached on Monday contribute as well to the positive sentiment in the market.

Investors are also digesting official data from Destatis that showed Germany's producer prices declined at the fastest pace in six months in April largely due to lower energy prices.

The benchmark DAX was up 128.58 points or 0.54% at 24,034.63 a few minutes ago.

RWE, up 2.8%, is the biggest gainer in the benchmark index. Siemens Energy, E.ON, Rheinmetall and Fresenius Medical Care are gaining 1.5 to 1.8%.

Porsche, MTU Aero Engines, Vonovia, Infineon Technologies, Porsche Automobil Holding, Deutsche Boerse, Fresenius, Qiagen and Munich Re are up 0.5 to 1.3%.

BASF is declining 1.7% following Jefferies downgrading the stock to 'Hold' from 'buy.' a rating downgrade by Jefferies . Sartorius is down 1.1%. Allianz, Heidelberg Materials and Daimler Truck Holding are modestly lower.

Data from Destatis showed producer prices in Germany fell 0.9% on a yearly basis in April, following a 0.2% drop in March. This was the second consecutive decrease and also marked the biggest fall since October. Prices were expected to drop more moderately by 0.6%.

Month-on-month, producer prices were down 0.6% compared to a 0.7% drop in March.

The annual fall reflects 6.4% decline in energy prices. By contrast, non-durable and durable consumer goods grew 3.2% and 1.4%, respectively.

Capital goods prices advanced 3.2%, while intermediate goods prices grew only 0.3% from the last year.