German Shares Extend Rally on Russia-Ukraine Ceasefire Hopes

12:03 PM EDT, 10/12/2026 (MT Newswires) -- German equities extended their rally, with the DAX closing Monday session 0.76% higher, as hopes for a Russia-Ukraine energy ceasefire supported sentiment, despite continued geopolitical tensions in the Middle East. Danske Bank noted that falling Brent crude prices also reflected a temporary US sanctions waiver on Russian diesel, helping ease global fuel supply concerns. Under the deal announced by US President Donald Trump on social media, Moscow is expected to immediately release 300,000 tonnes of diesel to US and global markets, followed by 500,000 tonnes in November and a subsequent shipment of one million tonnes. However, price losses were capped by persistent risks in the Middle East following fresh Houthi attacks on Saudi Arabia. In corporate news, Volkswagen's (VOW.F, VOW3.F) global vehicle deliveries fell 14.3% year over year in the third quarter to 1,885,300 units across all drive types, against the 2,198,900 vehicles delivered during the same period last year. The German automotive company gained 0.74% at closing. Meanwhile, BASF (BAS.F) is willing to guarantee jobs and German sites at Evonik Industries (EVK.F) as part of a potential takeover agreement, Reuters reported Monday, citing two unnamed sources. The commitments would rule out compulsory redundancies in Germany until 2032, with any workforce reductions required to be voluntary and include severance pay. BASF and Evonik were down 1.02% and 1.22, respectively. Meanwhile, Deutsche Bank Research downgraded FlatexDEGIRO (FTK.F) to hold from buy and lowered its price target to 31 euros from 46 euros amid cooling customer growth and governance uncertainty. "Customer growth is slowing, while trading activity and cash balances are normalising. At the same time, increasing competition could drive customer acquisition costs higher. Recent changes to the Supervisory and Management Boards have added uncertainty around governance and strategic stability, weighing on investor sentiment. German pension reform could provide meaningful long-term upside through greater retail participation in capital markets, customer acquisition and cross-selling, although we expect limited near-term earnings contribution and higher customer acquisition costs," the research firm said. The online brokerage company fell 1.92%. On the economic front, key releases expected for the week ahead include September inflation prints for Germany and the US due on Tuesday and Wednesday, August industrial production data from the eurozone and US retail sales results for September on Thursday, as well as the euro area's September inflation data due on Friday.