DAX Rallies On China Optimism

(RTTNews) - German stocks rose sharply on Wednesday amid optimism that Chinese authorities will offer support for its stock markets.

Investor shrugged off the latest business activity readings showing that Germany's economic downturn worsened this month with both manufacturing and services activity contracting.

Meanwhile, the Ifo institute trimmed its 2024 economic growth forecast as the government slashes spending.

Europe's largest economy is now expected to grow by 0.7 percent this year, down from the previous forecast of 0.9 percent.

The benchmark DAX was up 143 points, or 0.9 percent, at 16,770 after falling around 0.3 percent in the previous session.

Equipment manufacturer Siemens Energy jumped more than 9 percent after posting forecast-beating Q1 results.

Software company SAP soared 7 percent after it announced plans to restructure 8,000 jobs in a push toward artificial intelligence growth.