The DAX in Frankfurt rose nearly 0.9% to close at 23,824 on Monday, outperforming its regional peers, lifted by renewed optimism in the country's manufacturing sector after German industrial production increased in July for the first time in four months. Investor sentiment was also buoyed by growing bets on a Fed rate cut this month, though caution lingered amid political uncertainty in France. On the corporate front, Siemens, Infineon Technologies, and SAP were among the top gainers, each adding between 0.8% and 1.6%, amid positive sentiment around European tech after reports that ASML is set to acquire a major stake in French AI startup Mistral AI. Shares of Rheinmetall, Renk, and Hensoldt advanced around 2%, as heightened geopolitical risks in Ukraine and the Middle East boosted demand for defense stocks.