The DAX showed a rise of 3.62 percent to 5,32.62 points around 1400 GMT, after orders for durable goods, manufactured items expected to last several years, leaped 4.0 percent, more than wiping out a 1.3 percent decline in June, the Commerce Department said.

The increase, which was led by a jump in commercial aircraft orders, was the second in the past three months, and provided a positive break from a recent series of weak manufacturing indicators.

The DAX had traded in positive territory all day despite the release of a German business confidence index by the Ifo research institute that showed a worse-than-expected fall that underscored a slump seen Tuesday in eurozone consumer confidence.

Other good news from the US was that the federal budget deficit was expected to decline to 8.5 percent of gross domestic product (GDP) this year, and to 6.2 percent in 2012, the Congressional Budget Office estimated.

It had previously expected US accounts to deteriorate further this year.

Copyright AFP (Agence France-Presse), 2011