European Market Sees Cautious Rebound Amid Declining Oil Prices

The European market saw a cautious rebound on Tuesday, driven by declining oil prices and moderate gains in technology stocks. The DAX futures led the charge, rising around 0.7% due to positive macroeconomic data from Germany. German GDP growth in Q2 2026 came in above expectations at 0.3%, while the business climate index rose significantly to 88.8, its highest level in two years.

Oil prices themselves are falling due to a partial reduction in the geopolitical premium. The US administration's actions towards Iran have not resulted in material tightening of restrictions or secondary sanctions. Reports of a possible return of US diplomats to posts in the Middle East were seen as a signal that Washington does not expect a rapid resumption or escalation of the conflict.

Company news was also positive, with industrials and travel and leisure stocks performing well. Kion Group led the pack, rising around 5%, while semiconductor makers ASML and Infineon rebounded ahead of Nvidia's earnings release. Siemens Energy saw gains after a report that CVC and EQT may be interested in a majority stake in its steam turbine business.