Following a weak start to the week triggered by the initial breakdown of peace negotiations between the U.S. and Iran, Dax investors are showing renewed confidence. The German benchmark index rose 0.9 percent to 23,949 points at Tuesday's opening. Negotiating teams from the U.S. and Iran are set to return to Islamabad later this week for peace talks, according to four insiders who spoke to Reuters. "Over the weekend, there was still confusion as to whether the talks would continue," noted Andreas Lipkow, an analyst at broker CMC Markets.

Among individual stocks, shares of steelmaker Salzgitter climbed more than five percent. ThyssenKrupp also saw gains of over four percent. The European Union has reached a provisional agreement to nearly halve steel imports and impose 50 percent tariffs on excess shipments. These measures are intended to protect the EU steel industry from overproduction in other countries.

(Report by Stefanie Geiger, edited by Ralf Banser. 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)