The German benchmark index started the day with a 2.5 percent gain at 21,815 points. Investors interpreted comments made by US President Donald Trump regarding the US Federal Reserve and China as conciliatory. Trump said that despite his recent criticism of Jerome Powell, he has no plans to fire the head of the US Federal Reserve. "If Powell stays in office and the Fed remains independent, that's good news for Wall Street and capital markets worldwide," said portfolio manager Thomas Altmann of QC Partners. "This restores some confidence." Investors also focused on cautious signs of easing in the trade dispute after Trump hinted at lower tariffs for China in the event of an agreement.
A surprisingly sharp rise in profits at SAP also caused jubilation on the Frankfurt Stock Exchange. The software group's shares rose by around ten percent. This put them on track for their best day on the stock market since October 2019. "Overall, this is a strong result that highlights the resilience and strength of SAP's earnings performance," said analysts at JP Morgan.
(Report by Anika Ross, edited by Sabine Wollrab. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
