Despite concerns about the impact of U.S. President Donald Trump’s trade policies, German stocks are up firmly in positive territory Wednesday morning with investors reacting to quarterly earnings updates and news about Ukraine accepting an agreement on mineral rights with the U.S.
The benchmark DAX was up 265.22 points or about 1.2% at 22,661.21 a little while ago.
Shares of Munich Re are up 5.1%. The reinsurance major reported net earnings of 991 million euros for the fourth quarter, down 1.9% from last year’s 1.011 billion euros. Earnings per share, however, edged up 0.4% to 7.54 euros from 7.51 euros last year.
E.ON is up nearly 4% after reporting fiscal 2024 net income of 4.5 billion euros compared to 517 million euros, last year. Earnings per share was 1.73 euros compared to 0.20 euros.
Covestro AG reported full year earnings of 266 million euros, or 1.41 euro per share for 2024, compared with 198 million euros, or 1.05 euro per share in the previous year. The company’s revenue for the period fell 1.4% to 14.179 billion euros, from 14.377 billion euros last year. The stock is up marginally.
Fresenius is rising more than 6.5%. Siemens Energy, Sartorius and Heidelberg are gaining 3.3 to 3.7%. Siemens, MTU Aero, Fresenius Medical Care, Deutsche Bank, Hannover Rueck, Brenntag, Vonovia, Commerzbank, Allianz, Beiersdorf, BASF and Deutsche Post are up 1 to 2.5%.
Deutsche Telekom shares are down despite the company’s turnaround results. A lower than expected earnings forecast for 2025 is contributing to the stock’s decline. The company expects that its adjusted earnings before interest, taxes, depreciation and amortization after leases will rise about 4.5% this year to 44.9 billion euros, less than the expected earnings of 46.9 billion euros.
Deutsche Telekom reported fourth quarter net profit of 4.182 billion euros compared to a net loss of 1.035 billion in the same quarter last year.
In economic news, survey data published by the market research group GfK and the Nuremberg Institute for Market Decisions said German consumer sentiment is set to fall in March on weaker income expectations and willingness to buy.
The forward-looking consumer sentiment index unexpectedly fell to -24.7 in March from -22.6 in February. The reading was expected to improve to -21.6.
The income expectations index dropped 4.3 points to -5.4 in February. The last time such a lower value was measured in January 2024. Higher prices and uncertain economic and political situation damped income outlook.
The willingness to buy index dropped to -11.1 from -8.4 in January.
However, consumers were somewhat more positive about economic outlook. The index measuring general economic conditions for the next twelve months rose 2.8 points to 1.2.
Market Analysis
DAX Rises 1.2% As Investors React To Quarterly Earnings
2025-02-26 09:23:18
