Following a positive start to the week, Dax investors remain cautiously optimistic. The German benchmark index rose 0.3 percent to 24,372 points at Tuesday's open, after gaining 1.5 percent the previous day. 'Investors have had to process a wealth of news regarding the situation in the Middle East over the past 24 hours,' noted Andreas Lipkow, analyst at broker CMC Markets. The postponement of the U.S. strike on Iran provided some tailwinds.

Among individual stocks, investors primarily favored defense names. Shares of Rheinmetall and Hensoldt were among the top gainers, with price increases of around four percent. Tank gearbox manufacturer Renk rose by approximately five percent. In contrast, shares of prosthetics manufacturer Ottobock plummeted by as much as 13 percent following allegations from speculative investor Grizzly. The short seller accuses the owner of high debt levels and the company of aggressive accounting methods. Ottobock did not initially comment.

(Report by Stefanie Geiger, edited by . For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets)