10 Stocks Lead Wednesday’s Charge, Mirror Broader Gains

4. Deutsche Bank Aktiengesellschaft (NYSE:DB)

Deutsche Bank rallied by 13.77 percent on Wednesday to finish at $23.88 each as investor sentiment was fueled by optimism that the next German government will implement fiscal reforms to allow more spending on defense and infrastructure projects.

Following the news, Germany’s 10-year government bond yield surged by 2.78 percent.

The higher spending spells good news for the German and larger European economy, including DB.

According to reports on Tuesday, Germany’s conservative Union bloc and the Social Democratic Party shook hands in adjusting constitutional debt brake system to allow defense spending to exceed 1 percent of Germany’s gross domestic product.

They also announced as much as 500 billion euros ($535 billion) in special funds for infrastructure projects.

The expected fiscal reforms could signal increased demand for financial services, which would largely benefit banks including DB.