Earnings Boost DAX to All-Time High Despite Geopolitical Concerns

Bayer

German stocks advanced on Tuesday, marking a fourth consecutive session of gains, as investors responded positively to several encouraging earnings reports and the latest data from the United States indicating a significant increase in manufacturing activity in the world’s largest economy.

Renewed concerns regarding geopolitical tensions constrained the market’s potential for growth. Germany’s benchmark DAX, which reached a new record high of 26,267.62, subsequently relinquished some of its gains and was recently at 26,154.75, reflecting an increase of 118.92 points or 0.45% from the previous close.

  • Bayer experienced an increase of 3.2%. The German conglomerate reported an unanticipated rise in second-quarter profit, bolstered by robust performance in its crop science division.
  • Rheinmetall and Infineon Technologies experienced increases of 2.5% and 2.3%, respectively, while Siemens Energy saw an advancement of 2%.
  • Brenntag, E.ON, Airbus, and Merck experienced increases ranging from 1% to 1.7%. SAP, GEA Group, Deutsche Telekom, Deutsche Bank, RWE, Commerzbank, Qiagen, and Heidelberg Materials experienced moderate increases in their valuations.
  • Shares of online retailer Zalando plummeted nearly 17% following the company’s adjustment of its 2026 revenue and growth forecast to the lower end of its previously indicated range.
  • Fresenius Medical Care experienced a decline of 7.6%, influenced by the company’s report indicating a decrease in treatment volumes in the U.S. for the second consecutive quarter.
  • Fresenius Medical Care’s shares experienced a decline of 7.6% during European morning trading on Tuesday, effectively erasing a significant portion of their year-to-date gains.
  • Lufthansa plunged 10% after the airline group warned of a lower operating profit this year, citing an uncertain geopolitical and macroeconomic environment.
  • Continental experienced a decline of 2.7%. The tyre maker reported a significant decline in second-quarter net income following the spin-off of Aumovio.
  • Adidas experienced a decline of nearly 3%. Beiersdorf, Daimler Truck Holding, BMW, Mercedes-Benz, and Fresenius experienced declines ranging from 1.1% to 1.5%.

The Institute for Supply Management released a report on Monday indicating that its reading on U.S. manufacturing activity rose more than anticipated in July. The ISM reported that its manufacturing PMI increased to 55.6 in July, up from 53.3 in June, with a figure exceeding 50 signifying expansion in the sector. Analysts had anticipated the index would increase to 54.0.