An unconfirmed report that Deutsche Bank is close to a $5.4 billion deal with the DoJ, which initially wanted $14 billion for mortgage-backed securities abuse, adds zest to DAX.
A fundraising is still widely seen as inevitable, even among observers who say investors are overreacting.
The lender insists its capital meets regulatory requirements. If that changes, it could be a test case for new European laws empowering regulators to put the squeeze on creditors.
Pressure mounts on Germany's largest bank as Focus magazine reports Chancellor Merkel refused to mediate in negotiations over a $14 billion DoJ fine and rules out financial aid.