DAX Rises 2% on United States-Iran Peace Deal Hope

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German stocks experienced a significant rise Friday morning, propelling the benchmark DAX up by more than 2%. This surge was driven by a flurry of buying activity as investors reacted to the decline in oil prices and a reduction in concerns regarding Middle East tensions, particularly after U.S. President Donald Trump decided to cancel his planned military actions against Iran.

The U.S. President announced that a ‘great settlement’ has been achieved to resolve the conflict with Iran, indicating that a signing ceremony might occur in Europe as soon as this weekend. Tehran, however, indicated that no final agreement has been ratified and that disagreements concerning frozen assets and the security of the Strait of Hormuz persist. Brent crude futures experienced a decline, reaching $85.40 a barrel before recovering slightly to $86.41, marking a decrease of approximately 4.4% from the previous close. The DAX, which reached 24,754.63, increased by 473.60 points or 1.96% to 24,683.49 recently.

  • Heidelberg Materials, the leading performer in the index, experienced a rise of 6% not long ago.
  • Deutsche Bank experienced an increase of 5.7%, whereas Commerzbank, Vonovia, Continental, MTU Aero Engines, Adidas, Volkswagen, Daimler Truck Holding, and Siemens saw gains ranging from 3.2% to 4%.
  • Porsche Automobil Holding, Mercedes-Benz, BMW, Siemens Energy, Fresenius Medical Care, Siemens Healthineers, and Fresenius experienced an increase of 2%-3%.
  • Zalando, Gea Group, Deutsche Post, Beiersdorf, Infineon Technologies, and Henkel experienced significant upward movement.
  • RWE experienced a decline of approximately 1.1%.
  • Deutsche Boerse and Rheinmetall experienced a decline of nearly 1%. E.ON, Scout24, and BASF also displayed signs of weakness.

In economic news, final data from Destatis revealed that Germany’s inflation slowed as initially estimated in May, largely reflecting the deceleration in energy price growth. Destatis confirmed that consumer price inflation decreased to 2.6% in May, down from 2.9% in April, which had been the highest since December 2023. Similarly, EU harmonised inflation decreased to 2.7%, as projected, down from 2.9% the previous month.