DAX Dips Almost 0.5% as Defense Stocks Falter

Dax Futures

The German market experienced a downturn Thursday morning, impacted by declines in defense stocks as Ukraine peace talks continue and optimism grows regarding U.S.-Iran negotiations. Investors responded to a series of earnings updates and regional economic data, all while anticipating the European Central Bank’s monetary policy announcement scheduled for later in the day. The benchmark DAX, which had fallen to 24,434.99, regained some of its losses, rising by 108.91 points or 0.44% to reach 24,543.86 approximately thirty minutes before noon.

  • Defense stock Rheinmetall experienced a decline of 8%.
  • Renk experienced a decline of 2.7%, while Hendsoldt saw a decrease of approximately 2.5%.
  • Volkswagen, Continental, BMW, RWE, E.ON, Siemens Energy, Porsche Automobil Holding, and Mercedes Benz experienced a decline of 2%-3%.
  • BASF, Siemens Healthineers, Daimler Truck Holding, Fresenius, Bayer, Allianz, Vonovia, Deutsche Post, and Deutsche Bank reported moderate losses.
  • SAP rose by 3.25% while Deutsche Bank increased by 2.75%.
  • Zalando, GEA Group, Heidelberg Materials, and Siemens saw an increase of 0.6% to 1%.

In December, German factory orders experienced their most significant growth in two years, propelled by a notable increase in large-scale orders, as official data disclosed on Thursday. Destatis reported that factory orders advanced unexpectedly by 7.8% from November. This marked the most significant growth since December 2023, defying predictions of a decline of 1.8%. The statistical office has adjusted November’s growth figure to 5.7%, an increase from the previously reported 5.6%.

Germany’s construction activity experienced a decline in January, reverting to contraction following a rise in December, which marked the first increase in nearly four years, according to survey data. The HCOB construction Purchasing Managers’ index recorded a value of 44.7 in January, a decline from the 50.3 noted in December. A score below 50.0 signifies a contraction. The reading indicated that the sector contracted at the quickest pace in three months.