(RTTNews) - German stocks advanced on Tuesday, with signs of a thaw in U.S.-China tensions, increased optimism around Covid-19 development and a smaller-than-expected decline in German economic output helping underpin investor sentiment.
The benchmark DAX rose 73 points, or 0.55 percent, to 13,140 after rallying 2.4 percent the previous day.
German GDP fell 9.7 percent sequentially in the second quarter after shrinking 2 percent in the first quarter, data from Destatits showed. The rate was revised down from -10.1 percent estimated on July 30.
Nonetheless, the quarterly decline was much larger than during the financial and economic crisis of 2008/2009 and the sharpest since quarterly GDP calculations started in 1970.
Meanwhile, German business confidence improved in August, survey data from ifo Institute revealed. The business confidence index rose to 92.6 in August from 90.4 in July. This was the fourth consecutive rise and above economists' forecast of 92.2.
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