BRUSSELS (dpa-AFX) - German stocks are up firmly in positive territory on Wednesday with investors reacting to the nation's cabinet approving a relief package to stimulate the economy and support companies.
Investors are also expecting a 25-basis point rate cut from the European Central Bank on Thursday.
The benchmark DAX was up 174.99 points or 0.73% at 24,257.85 a little while ago.
Infineon Technologies is rising 4.3%, and Airbus is up 3.7%. Siemens, Beiersdorf, Deutsche Post, Henkel, Brenntag, Bayer, Qiagen and Symrise are gaining 1 to 2%.
Sartorius is declining more than 2.5%. Siemens Energy and Deutsche Bank are down 1% and 0.9%, respectively.
Porsche Automobil, Continental, Deutsche Boerse, Mercedes-Benz, Fresnius Medical Care, Volkswagen and Rheinmetall are also down in negative territory, although with less pronounced losses.
The German cabinet has approved a first tax relief package worth 46 billion euros ($52.43 billion) from 2025 to 2029 to support companies and revive its sluggish economy, the government said.
On the economic front, data showed Eurozone's services sector contracted modestly in May, with the final PMI Services reading falling to 49.7 from April's 50.1. The U.K. services PMI was finalized at 50.9, up from April's 27-month low of 49.0.
The HCOB Germany Composite PMI was revised slightly lower to 48.5 in May 2025 from a preliminary of 48.6, and confirming the private sector in Germany fell back into contraction after four months of expansion.
Business activity declined across the service sector for the second month in a row and at the quickest rate for two-and-a-half years, dropping to 47.1 from 49.0. Meanwhile, the manufacturing sector remained weak with the reading coming in at 48.3 vs 48.4.
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