Germany’s DAX index advanced 0.6% to close at 23,630 on Thursday, the second day of gains and outperforming its European counterparts. Investor focus remained on the ceasefire developments between Israel and Iran and NATO’s pledge to raise defense spending to 5% of GDP by 2035. German plans for record-breaking public investment also supported sentiment. In domestic economic news, the GfK Consumer Climate Indicator slipped from -19.9 in June to -20.3 in July, signaling weaker sentiment that could weigh on household spending. On the corporate front, defense stocks advanced firmly, with Rheinmetall up 7.3%, Hensoldt rising 4.3%, while Renk added 3.1%. Banks and pharma stocks also posted solid gains. On the flipside, retailers such as Adidas (-2.5%) and automakers including Volkswagen (-1.5%), Mercedes Benz Gropu (-1.4%) and Porsche Automobil (-1.3%) lagged behind.