DAX Index Blinks Green; German Economic Sentiment Improves
German shares climbed on Tuesday, with the blue-chip DAX index ending the trading session 0.59% in the green, as the market assessed the latest local economic sentiment survey against escalating tensions in the Middle East and reports of potential new tariffs.The ZEW economic sentiment indicator for Germany jumped to 26.3 points in July from June's 10.5 points, beating the consensus forecast of 15.1 points. The current situation index also improved by 3.4 points to -77.6 points, against the expected -77.8 points."The economic outlook continues to improve in July; it seems that the reforms are having an effect. Especially the export-oriented sectors as well as domestic demand experience sustained growth. Nevertheless, the uncertainty associated with the developments in the Iran conflict and the oil price remain a crucial factor affecting the prospects for a recovery of the German economy," ZEW President Achim Wambach said.Speaking of the war, Reuters reported, citing emails seen by the newswire, that Yemen's Iran-backed Houthi militia informed shipping companies that handling cargo at Saudi Arabian ports risks being targeted "in any location." The Houthis on Monday declared a naval blockade against the kingdom, further threatening global supply chains and energy trade as the US-Iran conflict broadens."The escalation in hostilities affecting the Strait of Hormuz and energy infrastructure in the region increases security of supply concerns and uncertainty over the market outlook. Threats to the Bab el-Mandeb Strait, which has become increasingly important as a route to bypass the Strait of Hormuz, exacerbate these concerns further," International Energy Agency Executive Director Fatih Birol said in a statement.In trade news, US officials are said to have drafted plans for President Donald Trump to roll out new tariffs on dozens of nations as the current 10% global rate is set to expire on Friday, London's Financial Times reported, citing sources briefed on the plans.On the corporate side, Zalando (ZAL.F) fell 0.42% after Germany's Federal Financial Supervisory Authority, or BaFin, concluded its review of the online fashion retailer's full-year 2025 financial statements, finding only "materially insignificant" omitted disclosure regarding its purchase of About You shares. Zalando said the investigation has zero impact on its financial performance and incurred no fines, except for "immaterial" procedural expenses.Outside the blue-chip index, BaFin launched an investigation into Jungheinrich's (JUN3.F) 2025 interim results over concerns that short-term rental trucks and inventories were overvalued. The intralogistics company noted its earnings for 2025 and 2026 are unaffected by the probe. Jungheinrich gained 0.48% on Xetra.
