DAX Up Marginally In Cautious Trade; Bayer Rises Nearly 9%

(RTTNews) - German stocks are moving in a tight range on Tuesday with investors largely making cautious moves, after a solid session on Monday thanks to news about U.S. and China striking a trade deal. Investors are digesting the data on German investor sentiment, and the latest batch of corporate earnings updates.

The benchmark DAX was up 35.29 points or 0.15% at 23,586.84 a little while ago.

A survey published by the think tank ZEW showed German investor confidence rebounded in May as the formation of new government as well as the progress in the tariff disputes strengthened expectations.

The ZEW Indicator of Economic Sentiment climbed sharply by 39.2 points to 25.2 in May. The reading was well above economists' forecast of 9.8.

However, the assessment about the current economic situation remained deep in the negative territory. The current situation index dropped unexpectedly by 0.8 points to -82.0. The score was forecast to improve to -77.0.

Bayer AG shares are up nearly 9% after the company reported a smaller than expected drop in quarterly adjusted profit and confirmed 2025 targets. Bayer's net income declined to 1.299 billion euros or 1.32 euros per share in the latest quarter, from 2 billion euros or 2.04 euros per share last year.

Zalaondo, Volkswagen, Qiagen, Porsche Automobil Holding, Daimler Truck Holding, BMW, BASF, Continental, Siemens Healthineers and Porsche are gaining 1 to 2.5%.

Shares of Munich Re are down nearly 4% after the company reported lower earnings. Munich Re reported that, in first quarter, it generated a net profit of 1.09 billion euros compared to 2.11 billion euros, previous year.

Munich Re said it is aiming to generate a net result of 6.0 billion euros for fiscal 2025. The company said the targets communicated for 2025 remain unchanged.

Shares of reinsurance company Hannover Re AG are down nearly 3% on lower earnings. The company said its earnings were hit considerable natural catastrophe losses mainly California wildfires. Reinsurance revenue, however, increased from last year, and the company maintained fiscal 2025 outlook with healthy underlying business.

In the first quarter, Group net income fell 13.9% to 480 million euros from last year's 558 million euros. Earnings per share came in at 3.98 euros, down from 4.63 euros a year earlier.

Vonovia is down 3.5%. Siemens Energy, Heidelberg Materials and SAP are down 0.4 to 1%.