DAX Up Sharply As Stocks Rally On Hopes Of An End To U.S. Government Shutdown

(RTTNews) - German stocks are up firmly in positive territory on Monday, rebounding strongly after falling to multi-week lows in the previous session. The mood is quite bullish today following the United States moving a step closer towards ending the historic government shutdown.

The U.S. Senate voted 60-40 to end the longest-running government shutdown, which entered its 40th day on Sunday.

The bipartisan legislation, which would fund most federal agencies through January and guarantee back pay for federal employees affected by the closure, would now go to the House of Representatives for consideration.

The benchmark DAX was up 436.53 points or 1.85% at 23,992.27 a little while ago.

Commerzbank is surging 5.3% after Deutsche Bank upgraded the stock's rating to 'buy'. Siemens Energy is gaining about 5% following a rating upgrade by Jeffereis. Daimler Truck Holding is up 4.5%, Siemens is rising 3.35% and Heidelberg Materials is up 3%.

Hannover Re is up more than 3% after raising its fiscal 2025 outlook. Hannover Re reported lower earnings for the third-quarter of its current financial year. However, nine-month profit increased from last year and the company raised fiscal 2025 outlook. The firm also issued fiscal 2026 profit guidance, expecting growth. For fiscal 2025, the company now expects Group net income of around 2.6 billion euros, higher than previous estimate of around 2.4 billion euros.

Infineon Technologies, Rheinmetall, Zalando, MTU Aero Engines, BASF, Bayer, Munich RE, Deutsche Post, Continental and SAP are also up sharply.

Eurozone investor confidence weakened in November as the economy struggles to emerge from the slump, survey results from the behavioral research institute Sentix showed on Monday.

The investor confidence index fell unexpectedly to -7.4 in November from -5.4 in October. The score was forecast to improve to -3.9.

There is little sign of an autumn upturn in the eurozone, Sentix said.

Both current situation and expectations indices declined at a similar rate. The current situation indicator posted -17.5, down from -16.0 in October. The expectations indicator dropped to 3.3 from 5.8 a month ago.