Market report: DAX will not be making any progress | EUROtoday

Even a wealth of latest information and information didn’t transfer the DAX main index right this moment. Wall Street’s AI bull market specifically utterly ignores the export and industry-heavy German main index.

The DAX didn’t make any progress right this moment both and is subsequently persevering with to development sideways at a excessive degree. Investors needed to course of a considerable amount of quarterly monetary statements, central financial institution choices and the assembly between Donald Trump and Xi Jinping. After a pleasant begin, the DAX fell. The index closed virtually unchanged at 24,118 factors.

It as soon as once more moved inside slim limits, right this moment between 24,057 and 24,215 factors. On stability, he has barely made any progress for nearly two weeks. The DAX is dominated by export- and industrial-heavy shares, however Wall Street’s present AI bull market is bypassing the main German index.

The MDAX of medium-sized shares, from which quite a few corporations offered quarterly outcomes right this moment, additionally solely moved barely. In the top there was a minus of 0.17 p.c to 29,890 factors.

As anticipated, the European Central Bank (ECB) has not modified rates of interest. At the exterior assembly in Florence, the ECB Governing Council left the deposit charge at 2.0 p.c. Central financial institution chief Christine Lagarde stated at her press convention that the ECB was in a great place. The results of the tariffs would solely grow to be clear over time. Many specialists count on that there’ll now be calm on the rate of interest entrance for a very long time.

“If growth in the euro zone does not slow down significantly, the ECB’s cycle of interest rate cuts can be considered over,” says VP Bank chief economist Thomas Gitzel.

“The ECB is pursuing a wait-and-see approach and is keeping key interest rates constant. This seems justified in the current situation. Although the inflation rate in the euro area rose slightly to 2.2 percent in September, it is only slightly above the central bank’s target,” commented Jörg Asmussen, General Manager of the General Association of the German Insurance Industry (GDV).

Yesterday, the US Federal Reserve (Fed) lowered the important thing rate of interest by 25 foundation factors to three.75 to 4.00 p.c, however central financial institution chief Jerome Powell expressed warning concerning additional rate of interest cuts. In doing so, he dampened the just about euphoric temper of the markets just lately.

The DAX obtained no assist from the economic system and the momentum promised by the federal government has to date didn’t materialize: Germany’s economic system didn’t develop within the third quarter from July to September both. The gross home product (GDP) stagnated in comparison with the earlier quarter, because the Federal Statistical Office introduced primarily based on preliminary information. According to this, investments in machines and automobiles elevated in the summertime, however exports of merchandise “made in Germany” decreased.

The German economic system will not be actually bettering, stated Commerzbank chief economist Jörg Krämer. “The federal government’s fiscal package should only stimulate the economy next year, although this is not sustainable due to the lack of reforms.”

The Eurozone economic system, then again, grew considerably greater than anticipated in the summertime. In the 20 international locations of the foreign money space, financial output elevated by 0.2 p.c within the third quarter in comparison with the earlier quarter. Compared to the corresponding quarter of the earlier yr, the eurozone economic system grew by 1.3 p.c between July and September.

Meanwhile, inflation in Germany misplaced a few of its tempo once more. Consumer costs in October had been 2.3 p.c above the extent of the identical month final yr – after 2.4 p.c inflation in September. However, economists had 2.2 p.c on the listing for October. It continues to be not foreseeable that the inflation charge will fall beneath two p.c by the top of the yr, commented the chief economist at asset supervisor HQ Trust, Michael Heise.

The euro fell after the information and was final buying and selling virtually 0.3 p.c decrease at $1.1569. The European Central Bank set the reference charge at 1.1550 (Wednesday: 1.1636) {dollars}.

Investors are confronted with a combined image on the New York Stock Exchange. While the main Dow Jones index rose by a great 0.4 p.c round noon native time, expertise shares had been trending lighter and remained beneath their latest bests. The market-wide S&P 500 additionally misplaced reasonably by simply over 0.3 p.c.

Investors in New York right this moment even have an entire vary of reports to digest, from the partial settlement within the customs and commerce dispute between the USA and China to the results of the newest key rate of interest choice within the USA to the enterprise figures of necessary US expertise corporations.

“It is definitely positive that the world’s two largest economies are obviously on a path to reconciliation and are moving towards each other,” stated market observer Thomas Altmann from asset supervisor QC Partners.

Above all, the statements made by the top of the US Federal Reserve the day earlier than are having an impression, as Jerome Powell dampened expectations of an additional reduce in key rates of interest in December. “A further rate cut at the December meeting is far from certain,” he stated. Analysts, nonetheless, had anticipated financial coverage to be relaxed once more on the finish of the yr.

The reporting season for the massive tech corporations revealed gentle and shadow. Google’s father or mother firm Alphabet elevated its quarterly earnings by round a 3rd regardless of a billion-dollar advantageous from the European Union. Overall, the outcomes exceeded expectations, praised analyst Ronald Josey from the financial institution Citigroup. The Alphabet A share gained virtually 4 p.c and reached a brand new all-time excessive.

Microsoft stays on a speedy progress path due to continued excessive demand for merchandise associated to synthetic intelligence (AI) and cloud companies. Analysts considered the outcomes as optimistic general, however identified that traders already had fairly excessive expectations of the software program firm. This implies that its shares are falling by round 2.8 p.c.

Meta is down by as a lot as 10.2 p.c. The Facebook Group is rising the tempo of funding in AI. This yr, capital investments are anticipated to succeed in as much as $72 billion. Meta introduced “significantly higher” spending for 2026, with out giving a selected determine. The statements will not be effectively obtained by traders.

Today after the market closes, two different heavyweights, Apple and Amazon, are presenting their quarterly figures. The Big Tech earnings reviews are thought of the spotlight of the US monetary reporting season.

Volkswagen was additionally in focus among the many particular person shares within the DAX. The Wolfsburg-based group slipped deep into the crimson within the third quarter, primarily due to the issues at its sports activities automobile subsidiary Porsche. The backside line is that there was a lack of 1.07 billion euros between July and September, as the corporate introduced right this moment. A yr in the past there was a surplus of 1.56 billion euros. VW preferences fell virtually two p.c within the DAX.

Sales rose by 0.6 p.c to 239 billion euros within the first 9 months, and deliveries rose by 1.2 p.c to six.6 million automobiles.

Telekom traders are additionally at present apprehensive, because the T share fell to its lowest degree in a yr at 27.22 euros right this moment. Since the top of May, Bonn’s shares, that are closely weighted within the DAX, have been in a downward development channel. They had already seen their annual excessive of virtually 36 euros in March.

The night earlier than, Verizon’s new boss Dan Schulman added gas to the fireplace by claiming management within the US market once more as a part of the quarterly figures. JPMorgan professional Akhil Dattani noticed this as the explanation for the numerous value weak spot within the US {industry}. Shares within the Telekom subsidiary T-Mobile US are down round 1.3 p.c. The T share restricted its losses considerably, however remained one of many largest DAX losers.

The Internet portal operator Scout24 exceeded expectations within the third quarter due to robust buyer demand. Management is now extra optimistic for the present yr and has specified the forecast it raised in August. Sales progress is now anticipated within the mid to higher vary of 14 to fifteen p.c, as the corporate, which has just lately been listed on the DAX, introduced on Thursday. This was effectively obtained on the inventory market, the share was the day’s winner within the main index and gained three p.c.

Lufthansa shares had been the day by day winners within the MDAX with a rise of over seven p.c. After a steady summer time quarter, the Kranich Line expects considerably extra revenue for the yr as an entire and is counting on the profitable restructuring of its core model.

After three years with a number of anger from prospects about flight cancellations and delays within the peak season, this summer time was one of the steady within the final ten years, stated Lufthansa boss Carsten Spohr. “2025 is not going to solely be an operational turning level, but additionally a yr by which we take a giant step in the best course from an financial perspective

Specifically, the working end result adjusted for particular gadgets (adjusted EBIT) fell barely year-on-year by one p.c to only over 1.3 billion euros. The surplus even shrank by twelve p.c to 966 million euros on account of a destructive tax impact. However, a doable pilot strike stays a danger. “If there were strikes, the cost disadvantage would increase and the prospects would decrease,” defined Spohr.

The new boss of the ailing sporting items group Puma, Arthur Hoeld, has initiated a restructuring program after latest vital declines in gross sales and earnings. The focus on core sports activities, fewer merchandise, the growth of direct enterprise with customers and extra focused advertising and marketing are meant to get Adidas’ native rival again on observe. The prices must also come down. This may also result in additional job cuts.

Samsung has satisfied the markets with its newest enterprise figures. The South Korean electronics large achieved an working revenue of 12.2 trillion gained (the equal of round 7.3 billion euros) within the third quarter, a rise of virtually 33 p.c. The background to the robust numbers is Samsung’s sturdy chip gross sales, which have recovered strongly in latest months. The firm expects demand for semiconductors to proceed on account of excessive investments in synthetic intelligence.

Burdened by US tariffs, the South Korean automobile maker Hyundai suffered a hunch in earnings within the third quarter. The working results of VW’s competitor fell by 29 p.c to 2.5 trillion gained (1.5 billion euros). The firm cited US tariffs as the explanation, which value the group 1.8 trillion gained prior to now quarter. Previously, a tariff charge of 25 p.c utilized to automobiles exported to the USA. However, in response to an settlement reached between Washington and Seoul on Wednesday, that is anticipated to fall to fifteen p.c within the coming months.

Weak demand in its house nation of China and deep discounting brought about electrical automobile maker BYD’s revenue to hunch within the third quarter. It shrank by 33 p.c in comparison with the earlier yr to the equal of 950 million euros, as BYD introduced right this moment. Sales solely fell by three p.c, to the equal of 23.6 billion euros. Sales in Europe are at present rising strongly.

BYD is the market chief for electrical automobiles in China. Last yr, gross sales exceeded the $100 billion mark for the primary time and likewise surpassed the gross sales of US competitor Tesla. BYD is on the rise in Europe: gross sales rose by 250 p.c within the first half of the yr, and in September BYD bought 13,000 automobiles within the EU, a rise of over 270 p.c in comparison with the earlier yr. Car manufacturing is scheduled to start out in Europe this winter, at a BYD manufacturing facility in Hungary.