DAX Modestly Higher Despite Paring Some Early Gains

German stocks managed to stay in positive territory Tuesday afternoon, though they’ve shed some of their earlier momentum. The market’s been propped up by encouraging economic data - Germany’s private sector activity accelerated in September, while the Eurozone service sector showed improved growth.

The benchmark DAX, after reaching 23,730.83 earlier, was hovering at 23,614.35, up a modest 77.88 points or 0.33%.

Infineon Technologies is leading the charge with a 3.6% gain, followed by Adidas climbing 2.7% and Volkswagen rising 2.5%. Porsche, GEA Group, Brenntag and Fresenius Medical Care are all up between 2% and 2.2%.

Several other heavyweights are showing decent gains between 1% and 1.8%, including Daimler Truck, Vonovia, Siemens Energy, MTU Aero Engines, Continental, Mercedes-Benz, Deutsche Post, Symrise, Deutsche Bank and Siemens.

On the downside, Heidelberg Materials, Commerzbank and Rheinmetall have fallen 1.3% to 1.4%, while Deutsche Boerse, Qiagen and Munich RE are experiencing milder losses.

Fresh data from S&P Global shows Germany’s private sector hitting a 16-month high in September. The HCOB composite output index jumped to 52.4, surpassing expectations that it would remain at 50.5. This marks the fourth consecutive month above the crucial 50.0 threshold, signalling expansion.

The improvement was driven by a renewed uptick in service sector activity, which rebounded from August’s slight decrease. The services PMI reached an eight-month high of 52.5, up from 49.3 and exceeding the forecast of 49.5.

Manufacturing, however, moved in the opposite direction, with the factory PMI declining to 48.5 from 49.8, falling short of the expected 50.0.

Across the wider Eurozone, the HCOB Flash Composite PMI edged up to 51.2 from 51.0, marking nine straight months of growth. Yet new orders stagnated after briefly expanding in August, creating a mixed picture. While services pushed activity higher, manufacturing slipped back into contraction territory, casting some doubt over the outlook.