Blue-chip DAX Index Little Changed; German Trade Surplus Widens
Germany's blue-chip DAX closed 0.05% in the red on Tuesday as investors evaluated fresh trade data against the backdrop of ongoing geopolitical uncertainty in the Middle East.The Federal Statistical Office reported that Germany's calendar and seasonally adjusted trade surplus was 21.3 billion euros in July, compared with 15.4 billion euros in June and the market forecast of 16 billion euros. Month-over-month exports ticked down 0.8%, against the 0.9% gain earlier and the expected zero growth, while imports dropped 5.7%, following a revised 4.5% increase.Speaking of trade, exports and digitalization helped improve business sentiment in the German electronics industry, with companies holding a "significantly more optimistic" outlook, according to the ifo Institute. The sector's business climate indicator rose to 16 points in August 2026 from 10 points a month ago, marking the index's strongest reading since May 2023."The expansion of data centers, investments in artificial intelligence, and automation in customer industries are having a direct impact on the order books. This is no short-lived flash in the pan, but the result of long-term investments that will boost the industry for some time to come," ifo expert Klaus Wohlrabe said.In geopolitical news, Middle East tensions escalated sharply, as Tehran announced plans to enforce a new "maritime exclusion zone" amid ongoing reciprocal US-Iranian tanker strikes. Concurrently, Iran-backed Houthi forces in Yemen expanded the regional conflict by launching attacks on US ally Saudi Arabia, hitting key oil installations.On the corporate side, DWS Group (DWS.F) will rebrand its global identity to Deutsche Asset Management in early November, while keeping its parent company name and ticker unchanged. The majority Deutsche Bank-owned (DBK.F) asset manager said the move highlights its "German and European heritage" while reflecting its international growth ambitions. DWS Group was up 3.10% on Xetra, while Deutsche Bank gained 0.59%.Meanwhile, BofA Global Research lifted its price objective for Siemens AG (SIE.F) to 330 euros from 317 euros, amid expectations of accelerating growth for the German technology group's Smart Infrastructure business. The stock closed 0.81% in the green."We raise our medium-term estimates for Siemens, reflecting a more constructive outlook for Smart Infrastructure, where end-market demand remains supported by continued investment in data centres, power distribution and grid modernization. While our estimate changes are relatively modest at the group level, we expect Smart Infra will deliver a stronger and more durable growth profile than reflected in consensus," the research firm wrote.
