Frankfurt's DAX 40 rose 1% to 24,280 points on Wednesday, as optimism grew over the possibility of a trade agreement between the US and the EU following a newly announced US-Japan deal, described by President Donald Trump as “massive.” The deal includes 15% tariffs on Japanese imports - lower than the previously threatened 25% - and involves $550 billion in investment commitments in the US. Auto stocks led the rally, with Porsche surging 7%, followed by Mercedes-Benz and Volkswagen (both up 5%), and BMW gaining 4.6%. Meanwhile, earnings season continues to unfold. Shares of SAP dropped more than 3% despite a solid second-quarter report, as the company maintained its full-year outlook, disappointing investors hoping for an upgrade. In contrast, Sartorius gained over 2.5% after an analyst at Canadian bank RBC noted that the risk-reward balance has turned favorable. The comment followed Tuesday's pullback in the stock, triggered by an interim report that was largely in line with expectations.