DAX Outperforms Peers

(RTTNews) - The DAX benchmark that tracks the performance of the 40 largest companies listed on the Frankfurt Stock Exchange staged an emphatic rebound on Tuesday. Sentiment dramatically improved in the backdrop of strong budget spending plans, reports of ceasefire between Israel and Iran as well as upbeat economic data.

Data released earlier in the day showed Germany's Ifo Business Climate indicator rising to 88.4 in June. The highest level in almost a year compared with 87.5 in May and forecasts of 88.2.

The index is currently trading 1.93 percent higher at 23,718.80, versus the previous close of 23,269.01. The day's trading ranged between a high of 23,812.79 and a low of 23,599.80.

In the 40-scrip index, only 5 scrips are trading in the overnight red zone.

Heidelberg Materials topped gains with a surge of 7.4 percent followed by Siemens Energy that added 5.4 percent. Sartorius, Deutsche Bank, Volkswagen all rallied more than 3 percent.

Rheinmetall topped losses with a decline of close to 2 percent.

The ceasefire announcement and the dramatic easing in geopolitical tensions dragged down the safe-haven greenback and the six-currency Dollar Index has shed 0.34 percent to trade at 98.08. Amidst the dollar's weakness, the EUR/USD pair rallied 0.22 percent. It is currently at 1.1604 after ranging between 1.1623 and 1.1572. The EUR/GBP pair has dropped 0.49 percent to 0.8525. The EUR/JPY pair has decreased 0.51 percent to 168.31.

Amidst strong budget spending plans and a higher level of defense spending, German bond yields spiked much more than its peers. Ten-year bond yields spiked 2.1 percent overnight to 2.5580 percent. The yield which was at 2.5060 percent at the previous close ranged between 2.5720 percent and 2.4970 percent in the day's trading.