DE40: German DAX Hits New Highs as US Announces Deal with China

• ProSiebenSat.1 Media SE shares soared to €7 per share, the highest since July, after shareholder PPF announced an all-cash partial offer for the German media firm

• Infineon Technologies AG reduced its full-year guidance and said that it expects revenue for fiscal 2025 to drop slightly after factoring in currency headwinds and an estimate of tariff impacts

European markets are gaining today after weekend trade talks between the U.S. and China led to the substantial reduction of tariffs. The volatility index VSTOXX is seeing the most significant movement, plunging -8.08% to 18.78, suggesting a substantial decrease in market uncertainty.

Among the gainers, the EU50 pan-European index is leading with a rise of 1.80% to 5390.6. The Netherlands' NED25 follows closely, up 1.79% to 920.00, while Austria's AUT20 has gained 1.75% to 4300.

France's FRA40 has risen 1.54% to 7849.2, and Italy's ITA40 is up 1.46% to 39437. Poland's W20 shows a solid gain of 1.30% to 2879.6, while Germany's DE40 has increased by 0.95% to 23825.6.

The UK's UK100 edged up 0.65% to 8593.5, and Spain's SPA35 climbed 0.60% to 13638. Switzerland's SUI20 is one of the few indices showing negative performance, down 0.14% to 12037.

Dax Returns by Sector. Source: Bloomberg Financial LP

Volatility is currently observed in the broader European market. Source: xStation

The German DE40 Index is maintaining its bullish momentum, trading at its new ATH and above the 23.6% Fibonacci retracement level and the 50-day SMA. Bulls will aim to hold above the recent highs, while bears will attempt to push the price below it, targeting the 50-day SMA. The RSI continues to show bullish divergence with higher lows, while the MACD is widening following a bullish crossover. Source: xStation

Market News

• ProSiebenSat.1 Media SE shares soared to €7 per share, the highest since July, after shareholder PPF announced an all-cash partial offer for the German media firm, a move that will make it more difficult for MFE to tighten its grip on the company. PPF announced a partial offer to acquire up to 29.99% of ProSieben shares for €7/share. ProSieben said PPF doesn't intend to acquire a controlling interest in the firm and the offer will not extend to the acquisition of all its outstanding shares. As of 10:49am in Frankfurt, ProSieben shares traded up 17% to €7; stock rose as high as €7.15 earlier in the session. The PPF offer came after MFE in March launched a tender offer for ProSieben shares in a cash and stock deal that values the German firm at about €5.7/share. PPF's premium counter bid reduces the chances of a success for MFE's bid and makes MFE less likely to achieve a significant ownership increase from its 30.09% stake, says Bloomberg Intelligence analyst Tom Ward.

• Infineon Technologies AG reduced its full-year guidance and said that it expects revenue for fiscal 2025 to drop slightly after factoring in currency headwinds and an estimate of tariff impacts. But such reduction is based purely on assumptions because tariffs haven't yet showed up in results, and a strong order intake points to a potential recovery in industrial and automotive chips, analysts say. Shares traded about 1% higher. For the third quarter, Infineon forecasts revenue of €3.7 billion, below analyst estimates of €3.84 billion, with the segment result margin expected to be in the mid-teens percentage range. The company's second-quarter results showed revenue of €3.59 billion, down 1.1% year-over-year, with total segment profit of €601 million, down 15% year-over-year. CEO Jochen Hanebeck explained, "Given that order intake still shows no signs at all of slowing down, we can only guesstimate the effects of tariff disputes. We have therefore applied a haircut of 10% of expected revenue in the fourth quarter of the 2025 fiscal year."

• European stocks climbed on Monday after weekend trade talks between the U.S. and China led to the substantial reduction of tariffs. President Trump's "reciprocal" tariffs on China will fall to 10% from 125%, while China will slash its tariff on U.S. goods to 10% from 125%, according to a joint statement. Further information is expected to follow during the course of the day, Treasury Secretary Scott Bessent said. U.S. Trade Representative Jamieson Greer said, "It's important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought." Pinpoint Asset Management said, "While this is not a final solution, it is a good starting point for the two countries to negotiate a full range of issues, including but not limited to trade." Prospects of easing tensions between Ukraine and Russia, and a ceasefire agreement between India and Pakistan, have contributed to improved market sentiment, IG said.

Other news coming from individual DAX index companies. Source: Bloomberg Financial LP