German stocks continued advancing on Wednesday, with the blue-chip DAX index closing 0.19% higher, as sentiment among companies in the country's export industry brightened.
The ifo Institute reported that German export expectations "considerably" improved to 9.6 points in August 2026 from -2.8 points in the previous month, marking the highest reading since February 2022 and the sharpest rise since June 2020. Based on the survey, manufacturers of electrical equipment, data processing equipment and electronic and optical products remain "very optimistic" about their export prospects, while companies in the paper, metal production and processing sectors forecast a decline in their exports.
In corporate news, Siemens Energy (ENR.F) is getting ready for the legal and operational separation of its Transformation of Industry business, with plans to spin off the business as a standalone entity and explore a new ownership structure while retaining a "meaningful" minority stake. The carved-out business is set to initially operate under the energy technology company's future Omterra brand. Siemens Energy's shares were down 0.97% on Wednesday's close.
"Transformation of Industry has developed successfully over the past several years and is now a profitable, high-growth business. We see the potential for further profitable growth if we can accelerate the business's continued development," Siemens Energy President and Chief Executive Officer Christian Bruch said in a release. "If we don't change our structure, we limit what Transformation of Industry can achieve. Our current investment focus is on power generation and power transmission, with higher immediate payback."
Mwb Research reiterated Deutsche Lufthansa's (LHA.F) buy rating and 21-euro price target, saying the German airline's "main hidden value" is its Lufthansa Technik unit, which provides maintenance, repair and overhaul services, and remains intact. The stock added 0.83% at closing.
"Lufthansa presented at our mwb GS8 conference yesterday and confirmed our bullish case. Management is in no rush on a Lufthansa Technik (LHT) IPO but did not rule it out, and we now expect a listing towards the end of the decade. An activist campaign could be a plausible accelerator," according to the research firm. "LHT alone is worth >40% of group EV standalone and the owned fleet covers >85%, which leaves the airline franchise and Cargo in the current valuation close to zero (mwb est.)."
Elsewhere and on the geopolitical front, Iran's Revolutionary Guard Corps claims that the US is hampering the proposed framework agreed between the Iranian government and Oman to secure safe transit of vessels through the Strait of Hormuz, CNBC reported. The Revolutionary Guards said the waterway would remain closed until the US accepts Iran's conditions.