18.02.202617:10:30UTC+00DAX Closes at 1-Month Highs

Frankfurt's DAX 40 extended gains on Wednesday, closing up about 1.1% at 25,278—its highest level since mid-January—in line with broader European equity markets. The advance was driven primarily by defense stocks after reports that Berlin is weighing the purchase of a minority stake in KNDS, the Franco-German manufacturer of Leopard tanks, ahead of the company’s planned stock market debut later this year. This support came even as geopolitical risks remained elevated.

Defense names were standouts, with Renk rising 5.1%, Rheinmetall jumping 4.9% and Hensoldt adding 3.7%. Sentiment was further lifted by easing concerns around the AI sector, boosting heavyweight technology shares: Siemens, Infineon Technologies and SAP gained between 2.1% and 3.9%.

Among other notable movers, Heidelberg Materials advanced 4.6%, Siemens Energy climbed 3%, while Commerzbank and Deutsche Bank added 2.6% and 2.1%, respectively.

In contrast, Bayer slumped 7.3% after announcing a preliminary U.S. settlement of up to $7.25 billion over 21 years related to Roundup litigation. The deal entails higher provisions and, while it would provide partial financial clarity, it does not fully resolve the company’s legal uncertainties.