BRUSSELS (dpa-AFX) - German stocks rose sharply on Monday as concerns over inflation and interest rates eased after oil prices fell amid hopes of renewed negotiations between U.S. and Iran as U.S. President Donald Trump cancelled planned military strikes on Iran and said there is a 'good chance' of progress in talks aimed at ending months of fighting.
It is said that negotiators are trying to break the deadlock over transit fees and the management of the Strait of Hormuz.
Easing worries about AI infrastructure spending also contributed to the positive sentiment in the market.
Brent crude futures fell to $81.55 a barrel before recovering to $83.90, still down more than 4.5% from previous close.
The benchmark DAX was up 348.52 points or 1.36% at 25,979.30 a few minutes past noon.
SAP moved up 4.3%. Siemens Healthineers, Adidas, Deutsche Telekom, Airbus and Mercedes-Benz climbed 3%-4%.
Zalando, MTU Aero Engines, BMW, Volkswagen, Commerzbank, Rheinmetall, Vonovia, Daimler Truck Holding and Qiagen gained 2%-2.7%. Beiersdorf, GEA Group, Brenntag, BASF, Continental, Deutsche Bank and Deutsche Boerse also moved notably higher.
Shares of motion control products maker Stabilus rallied 4.5% after the company reported a sharp rise in third-quarter net profit, helped by a one-off gain from the sale of subsidiaries.
RWE and Hochtief dropped 1.6% and 1.4%, respectively. Siemens Energy, Bayer and Symrise shed 0.5%-0.7%.
Data from S&P Global confirmed Germany Manufacturing PMI at 52.2 in July, the highest in four months, compared to 50.3 in June, marking an uptick in manufacturing activity in the country.
Data from the federal statistical office Destatis showed Germany's retail sales declined 1.1% month-on-month in June, from a marginally revised 1.2% increase in the previous month and missing market estimates for a 0.5% drop. On an annual basis, retail sales slipped 0.2%, following an upwardly revised 2.1% increase in May.
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