Germany's DAX Index Flat; Economic Sentiment Turns Positive
Germany's DAX index was little changed on Tuesday, closing 0.07% higher, as data showed that economic sentiment in the country and the wider eurozone turned positive after the US and Iran agreed on a preliminary deal to end the war.The ZEW economic sentiment indicator for Germany improved to 10.5 points in June from -10.2 points in May, higher than the consensus estimate of -6 points. On the other hand, the current situation indicator fell to -81 points from -77.8 points.In the wider euro area, the economic sentiment index climbed by 18.6 points to 9.5 points in June, better than market forecasts of -7.2 points, while the current economic situation indicator decreased by 2 points to -43.4 points."The ZEW Indicator returns to positive territory as financial market experts expect the Iran conflict to be nearing an end. This is likely to ease the massive pressure on energy prices and inflation, which would benefit energy-intensive industries and private households and would strengthen domestic demand," ZEW President Achim Wambach said.In other news, the European Union and the UK agreed to hold their second summit on July 22. "Close EU-UK cooperation is essential for our shared European security, resilience, and prosperity," European Council President António Costa said in a post on social media platform X.On the corporate front, the German federal government rejected Italian lender UniCredit's offer to exchange shares in Commerzbank (CBK.F). The Financial Market Stabilisation Fund's interministerial steering committee said the offer does not include an appropriate premium on Commerzbank's current share price. The German bank's stock was up 0.25% at the end of the trading day.Meanwhile, Deutsche Bank Research lifted its price target for Redcare Pharmacy (RDC.F) to 102 euros from 99 euros, with a buy rating on the stock, after the online pharmacy raised its full-year 2026 guidance following growth acceleration in the first two months of the second quarter. Redcare's shares jumped 6.89% at closing."The new outlook implies c.15% upside to consensus 2026 earnings, meaning the first catalyst for our recently opened Catalyst Call has now materialized," the research firm said. "We incorporate the upgraded guidance, lifting our 2026 adjusted EBITDA estimate by 12% and outer-year estimates by up to 5%, resulting in a new target price of EUR102."
