DAX Slides Almost 1% Amid Valuation Worries and Weak PMI Data

Dax Futures

Following the end of a five-day losing streak in the prior session, bolstered by robust earnings and guidance from U.S. chipmaker Nvidia, the German market has entered a pronounced decline on Friday. This downturn is driven by renewed apprehensions regarding valuations, ambiguity surrounding Federal Reserve interest rates, and data indicating a slowdown in activity within the German services and manufacturing sectors. The benchmark DAX, which fell to 22,942.13 earlier in the session, was down 204.83 points or 0.88% at 23,103.63.

A survey indicated that Germany’s private sector growth experienced a deceleration in November, characterized by more moderate expansions in both services and manufacturing. The composite output index decreased unexpectedly to 52.1 in November, down from a 29-month peak of 53.9 the previous month. The outcome indicated a deceleration in growth rates across both the manufacturing and services sectors. Where as –

  • Siemens Energy is experiencing a decline of 8.8%, exhibiting weakness
    following the significant increase observed in the previous session.
  • Rheinmetall has experienced a decline of nearly 6.5%, whereas Infineon Technologies
    and Heidelberg Materials have seen decreases of 4% and 3.3%, respectively.
  • Zalando, RWE, Deutsche Bank, Commerzbank, and Siemens have experienced declines
    ranging from 1.6% to 2.7%. GEA Group and Fresenius are experiencing moderate declines.
  • Deutsche Bank and Symrise are experiencing increases of 2.85% and 2.5%, respectively.
  • Deutsche Telekom, Beiersdorf, Henkel, Qiagen, and BASF have experienced
    an increase in value, ranging from 1 to 2%.

The survey indicated that factory production recorded its most subdued growth since July. In a similar vein, the growth of services activity experienced a deceleration in November. The services Purchasing Managers’ Index registered at 52.7 in November, a decline from the 54.6 recorded in the preceding month. The anticipated score was 54.0.

The manufacturing PMI declined to a six-month low of 48.4 in November, down from 49.6 in the previous month. The score was projected to increase to 49.8. “These figures represent a significant setback for Germany,” stated Cyrus de la Rubia. “Overall, the German economy is limping towards marginal growth at best in the fourth quarter,” he added.