FRANKFURT (dpa-AFX) – Driven by investor expectations of a mild resolution to global tariff disputes, Germany's DAX stock index surged to a record high on Wednesday. The rally was fueled particularly by shares in export-dependent, economically sensitive sectors such as the automotive industry. In the afternoon, the DAX reached a peak of 24,609 points, surpassing its previous record from early June. By the end of trading, the index closed up 1.42 percent at 24,549.56 points.

However, market observers cautioned against excessive optimism: "Investors are becoming increasingly resistant to Washington's sabre-rattling," wrote analysts from Index-Radar. The ebb and flow between escalation and de-escalation in the tariff dispute is being met by the stock market with a "certain indifference." Yet, they warned, this is playing with fire. The higher the prices climb, the greater the risk becomes.

This indifference among investors regarding tariffs could become their undoing in the coming weeks, warned Jürgen Molnar of brokerage Robomarkets. U.S. President Trump remains unpredictable. "Anyone entering the market now is buying a significant amount of risk," the market strategist said.

The MDAX, which tracks mid-cap stocks, climbed 1.54 percent to 31,536.47 points mid-week. The SDAX, covering smaller companies, reached another new high, as it had the previous day. The Eurozone's leading index, the EuroStoxx 50, gained 1.37 percent.

Siemens and BASF, both major exporters, were among the top performers, rising by 3.9 and 2.6 percent, respectively. Automobile shares were also among the winners, as they stand to benefit most from a favorable outcome to the tariff disputes. Gains for Mercedes-Benz, Volkswagen, BMW, and Continental reached up to 2.7 percent.

Commerzbank shares, on the other hand, ended up just 0.4 percent higher, landing in the lower half of the leaderboard. This modest increase followed a recent surge that had pushed shares to their highest level since 2011. Italian bank Unicredit doubled its stake in Commerzbank from just under 10 to around 20 percent, overtaking the German government as the largest shareholder, which still holds just over 12 percent.

In the MDAX, Aurubis shares rose by 4.4 percent. The Hamburg-based copper smelter operates a major plant in the U.S. and benefited from the recent sharp rise in U.S. copper prices. President Trump's threat of steep tariffs on imported copper had pushed prices to record levels.

Shares in defense supplier Renk jumped 5 percent, triggered by a report that the manufacturer of drive and control technology is considering spinning off its civilian business.

In the recently celebrated steel sector, shareholders of Salzgitter and Klockner & Co < DE000KC01000 > enjoyed further gains of 4.6 and 3.3 percent, respectively. Salzgitter had rallied on Tuesday after a material met technical requirements for use by the German armed forces, pulling Klockner shares up as well.

Major stock markets outside the Eurozone lagged behind on Wednesday: Switzerland's SMI index rose 0.3 percent, and London's FTSE 100 gained 0.2 percent. The U.S. Dow Jones Industrial Average was slightly up at the close of European trading.

--- By Benjamin Krieger, dpa-AFX ---