DAX Takes a Dip as Investors Cash In

Dax Futures

Despite data indicating a decline in the nation’s inflation for December, German stocks exhibited weakness on Friday morning as investors opted to realize some profits, capitalizing on recent gains. Geopolitical concerns have resurfaced as apprehensions regarding Greenland come to the forefront, with media reports indicating that European troops are deploying to the region to safeguard it against a tangible military threat from the United States.

The announcement regarding the deployment of troops from various European nations and other NATO allies followed a breakdown in high-level negotiations between officials from Denmark and the United States on Thursday. The benchmark DAX declined by 47.47 points, representing a decrease of 0.19%, settling at 25,327.04 approximately thirty minutes prior to noon. Data indicated that the harmonized index of consumer prices experienced a 2% increase on a year-over-year basis in December, subsequent to a 2.6% rise in the preceding month.

  • Brenntag and BASF experienced declines of 2.4% and 2.3%, respectively.
  • Volkswagen, Mercedes-Benz, BMW, SAP, Porsche Automobil Holding, and Heidelberg Materials experienced declines ranging from 1% to 1.6%.
  • Daimler Truck Holding experienced a decline following the announcement of a decrease in sales for 2025.
  • Continental, Siemens, Zalando, Bayer, Adidas, and Symrise experienced a decline.
  • Siemens Energy experienced an increase of 3.25%.
  • Fresenius experienced an increase of nearly 2%, while Fresenius Medical Care saw a rise of 1.1%.
  • Qiagen, Commerzbank, RWE, Merck, and Rheinmetall experienced modest increases.
  • Kloeckner & Co shares experienced a significant increase of 28% following the announcement by Worthington Steel regarding its acquisition of the German steel processor in a transaction valued at $2.4 billion.

In a similar vein, consumer price inflation declined to 1.8%, down from 2.3% recorded in the preceding two months. The most recent inflation rate recorded was the lowest since September 2024, aligning with the preliminary estimate provided. In December, the HICP experienced a monthly increase of 0.2%, while the CPI showed no change. Both rates aligned with the preliminary projections. In 2025, the average CPI inflation stood at 2.2%, maintaining the same rate observed in 2024 and reflecting a decline from the 5.9% recorded in 2023. Core inflation decreased to 2.8% in 2025, down from 3% in 2024.