FRANKFURT (dpa-AFX) - The German equity market pushed further into positive territory on Wednesday, ahead of potentially trend-setting news from chip giant Nvidia. Sentiment was bolstered by a sharp decline in oil and gas prices following media reports that U.S. President Donald Trump has signaled progress in negotiations with Iran.

The benchmark Dax index rose 1.38 percent to close at 24,737.24 points. The MDax, which tracks mid-cap stocks, advanced 1.68 percent to 31,857.74 points.

The ultimate significance of the Dax's three-day winning streak may only be determined after the closing bell, when Nvidia - the 5.5 trillion dollar bellwether for the booming artificial intelligence sector - releases its quarterly results and forward guidance.

'We are entering the numbers with cautious optimism,' wrote tech expert William Beavington of investment house Jefferies regarding Nvidia. From an investor perspective, the revenue target for the current quarter is expected to be crucial. The quasi-official consensus forecast among analysts currently stands at 87 billion dollars.

Interestingly, according to Beavington, the 'buy-side' revenue forecast for the second quarter is even higher at 91.5 billion dollars. The buy-side includes asset managers, pension funds, hedge funds, and wealth managers - market participants who act as active buyers and sellers. Consequently, expectations among these players are set even higher than those of sell-side investment bank analysts.

Nvidia shares gained 2 percent in New York after retreating from record levels in recent days. Semiconductor stocks rallied in sympathy: Infineon shares led the Dax with a gain of over 5 percent, while shares in equipment manufacturer Aixtron also climbed 5 percent.

The Eurozone's blue-chip EuroStoxx 50 index rose by over 2 percent on Wednesday. Zurich's SMI lagged with a 0.3 percent gain, while London's FTSE 100 saw more pronounced growth. The Dow Jones Industrial Average was up nearly one percent at the time of the European market close.

In the German market, two companies were in focus due to secondary share placements. Shares in academic publisher Springer Nature fell 4 percent following a divestment by financial investor BC Partners.

In contrast, Renk shares defied a placement by tank manufacturer and shareholder KNDS, rising 3.3 percent. Traders attributed the resilience to a positive sectoral environment, noting that shares in Czech defense group CSG surged following strong financial results. Rheinmetall gained 2.2 percent, though it was significantly outperformed by Hensoldt, which jumped 10.3 percent.

In the chemicals sector, a downgrade of Lanxess by Jefferies weighed on the stock, sending it nearly five percent lower.

Despite a dividend markdown of 0.97 euros per share, Ottobock shares moved higher. The prosthetics manufacturer rejected allegations made the previous day by short-seller Grizzly, which had caused the share price to collapse by eleven percent./bek/he

--- By Benjamin Krieger, dpa-AFX ---