Automakers Lead German Market Higher On Industry Push

(RTTNews) - German stocks moved higher on Tuesday, extending gains from the previous session, with some encouraging earnings updates, and lower oil prices amid hopes about resumption of U.S.-Iran peace negotiations aiding sentiment.

Oil prices extended declines to touch a one-week low amid easing West Asia tensions after U.S. President Donald Trump claimed that Washington has engaged in "good talks" with Tehran.

Brent crude futures tumbled to $82.78 a barrel earlier today. At $83.83, brent was down more than 2.3% a little while ago.

The benchmark DAX, which advanced to 25,554.94, was up 85.61 points or 0.34% at 25,510.02 at noon.

Automakers were broadly higher following reports that France and Germany are pursuing a new initiative to revive the auto industry. Volkswagen surged 3.6% and Mercedes-Benz rallied 4%. Mercedes-Benz Group reported a net profit of 1.065 billion euros for the second-quarter, compared to 915 million euros, prior year. Earnings per share was 1.14 euros compared to 0.95 euros.

Daimler Truck Holding and BMW moved up 3.75% and 3.7%, respectively.

Among other gainers, Rheinmetall jumped more than 4%. MTU Aero Engines climbed 3.7%, while Beiersdorf, Brenntag and Hochtief gained 2%-2.25%.

SAP, Henkel, Heidelberg Materials, Zalando, Symrise, Deutsche Telekom, Scout24, Deutsche Post and BASF advanced 1%-2%.

Siemens Energy and Infineon Technologies shed 2% and 1.9%, respectively. Fresenius Medical Care drifted lower by 1.3%. RWE, Qiagen, E.ON and Siemens posted moderate losses.