DAX Opens Slightly Higher as China and US Ease Export Restrictions

The easing of tensions between the US and China in their ongoing trade dispute provided support for the DAX on Wednesday.

The German benchmark index gained 0.2 percent in early trading, reaching 24,022 points. However, analysts do not expect significant upward momentum. "The framework for a trade agreement announced overnight is too vague for investors," said Jochen Stanzl of CMC Markets.

After two days of intensive negotiations on neutral ground in London, both sides announced that they had reached a basic understanding. The agreement aims primarily to ease export controls--such as those on rare earths from China. The presidents of both countries must now review the framework agreement. However, there was no apparent progress on the core issue of US special tariffs.

Later in the day, attention will also turn to US inflation data for May. These figures are expected to show how much prices in North America have risen as a result of the trade conflict. Experts surveyed by Reuters anticipate a 2.5 percent year-on-year increase in consumer prices. In April, the inflation rate had fallen to 2.3 percent.

Among the biggest gainers were Bayer shares, following buy recommendations from HSBC and Kepler Cheuvreux. The stock led the DAX with a 1.8 percent increase. On the losing side was Zalando, whose shares were down 1.5 percent.

(Reporting by Daniela Pegna, edited by Myria Mildenberger. For inquiries, please contact our editorial team at [e-mail] (for politics and economics) or [e-mail] (for companies and markets).)