FX.co ★ DAX Jumps 1% on Trade Deal Hopes

On Wednesday, Frankfurt's DAX 40 index experienced a 1% increase, reaching 24,280 points. This upward movement was fueled by growing optimism surrounding a potential trade agreement between the United States and the European Union, spurred by the recent US-Japan deal. President Donald Trump described this deal as "massive," highlighting 15% tariffs on Japanese imports, a reduction from the previously anticipated 25%. The agreement also encompasses $550 billion in investment commitments within the US.

The auto sector spearheaded the stock rally, with Porsche's shares soaring by 7%, while Mercedes-Benz and Volkswagen both appreciated by 5%, and BMW ascended by 4.6%. Concurrently, the earnings season unfolded with notable developments. SAP's shares declined by over 3% despite a robust second-quarter report, as the company adhered to its full-year forecast, leaving investors, who were hoping for an upgrade, disappointed. Conversely, Sartorius saw a gain of more than 2.5% following a favorable risk-reward assessment by an analyst from the Canadian bank RBC. This assessment came after the stock experienced a pullback on Tuesday due to an interim report that aligned with market expectations.