DAX Up Sharply As Investors React Positively To Earnings

(RTTNews) - German stocks are up sharply on Thursday, with investors shrugging tariff concerns and going on a buying spree across the board, focusing mostly on earnings. A report showing a growth in the nation's exports in the quarter ended June is aiding sentiment, somewhat outweighing the data showing a sharp drop in industrial output in the month for June.

The benchmark DAX, which climbed to 24,391.63 earlier in the session, was up 382.17 points or 1.6% at 24,286.70 a little while ago.

BASF is surging higher by over 5%. Allianz is up nearly 5% after reporting better-than-expected second quarter earnings and affirming its full-year operating profit guidance.

Heidelberg Materials is gaining 4.7%, Siemens is up 4.1% and Deutsche Post is advancing 3.75%.

Adidas, Commerzbank, Bayer, Mercedes-Benz, Volkswagen, Daimler Truck Holding, Muench Rueck, SAP, Henkel, Deutsche Bank, Beiersdorf, BMW, Brenntag and Porsche Automobil Holding are up 2 to 3%.

Hannover Rueck, Porsche, Zalando, Continental, Sartorius and Siemens Healthineers are also up with strong gains.

Rheinmetall is down more than 5% after reporting lower-than-expected second-quarter sales.

Deutsche Telekom is down by about 4%, weighed down by weak second quarter results.

E.ON, Qiagen, Merck and RWE are lower by 0.8 to 1.6%.

United Internet is down by about 1.7% after reporting a small rise in first-half profit.

On the economic front, data from Destatis showed Germany's exports grew for the first time in three months in June, advancing by 0.8% on a monthly basis, reversing a fall of 1.4 percent in May. Shipments were expected to rise 0.5%.

Reflecting the impact of higher tariff, exports to the United States dropped 2.1% on a monthly basis to EUR 11.8 billion. This was the third consecutive decrease and marked the lowest value since February 2022.

Overall German imports climbed 4.2%, in contrast to the 3.9% decrease in the previous month. The rate also far exceeded the forecast of 1%.

Germany's industrial production declined more than expected in June, a separate data from Destatis revealed. Industrial output decreased 1.9% on a monthly basis, bigger than May's revised 0.1% drop and also worse than economists' forecast of 0.4% fall.

On a yearly basis, the decline in industrial production deepened to 3.6% from 0.2% in the previous month.