Germany's DAX Hits Record as Bayer Jumps on Litigation Relief

Germany's benchmark DAX index rose to a record close as European equities rallied, buoyed by softer US employment data that eased fears of further interest-rate increases and lifted risk appetite across the region. The DAX gained about 2.2%, outpacing other major European indices, as the pan-European STOXX Europe 600 also closed at a record high. Investors rotated into healthcare, financial and defence shares, while technology was the main laggard as a global selloff in semiconductor stocks spread. The standout mover in Germany was Bayer, whose shares jumped roughly 9% after the company took steps aimed at reducing the litigation risk tied to its Roundup weedkiller, a long-running overhang that has weighed heavily on the stock. Healthcare names more broadly led gains, echoing a defensive tilt as markets weighed the outlook for growth and rates. The rally underscored how sensitive European equities remain to the US monetary-policy outlook, with a softer American labour market translating into optimism abroad. Analysts cautioned that the durability of the advance will depend on whether the rotation into non-technology sectors can be sustained without leadership from chipmakers.