Frankfurt’s DAX 40 inched higher on Tuesday after a cautious start, rising 0.8% to cross 23,350, mirroring other European peers. Investors returned from the Easter break with a focus on Middle East developments, particularly as the deadline for President Trump’s ultimatum to Iran looms. Hopes for a diplomatic breakthrough offered some support to market sentiment, though uncertainty persisted amid mixed signals from Washington.
While President Trump warned of severe consequences if Iran failed to reopen the Strait of Hormuz, he also described Iran as an “active, willing participant” in negotiations. Tech, media, chemicals, and banks drove sectoral gains, while utilities lagged. BASF, Infineon and Fresenius Medical Care topped the index, rising between 1.8% and 2.4%. Deutsche Telekom added 1%, tracking a rally in European media stocks following Pershing Square’s takeover offer for Universal Music Group. Conversely, Heidelberg Materials, Qiagen NV, RWE and Rheinmetall saw modest losses.
