{"id":56687,"date":"2025-02-25T09:43:07","date_gmt":"2025-02-25T09:43:07","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/02\/25\/dax-recovers-after-early-setback\/"},"modified":"2025-02-25T09:43:07","modified_gmt":"2025-02-25T09:43:07","slug":"dax-recovers-after-early-setback","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/02\/25\/dax-recovers-after-early-setback\/","title":{"rendered":"DAX Recovers After Early Setback"},"content":{"rendered":"
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German stocks are recovering from an early setback Tuesday morning with select counters attracting some strong buying interest. The early weakness was due to data showing a contraction in the nation’s GDP, and concerns about the potential impact of the Trump administration’s tariff moves and U.S. – China tensions on global economic growth.<\/p>\n

Investors are also focusing the political developments in the country as the Christian Democratic Union (CDU), led by Friedrich Merz, looks to form a coalition governement.<\/p>\n

The benchmark DAX, which opened at 22,279.01 and dropped to 22,255.57 subsequently, recovered well and was up 19.96 points or 0.09% at 22,441.32 a little while ago.<\/p>\n

Rheinmetall is rising 3.6% on reports Germany’s chancellor-in-waiting Friedrich Merz has opened talks with the Social Democrats to quickly approve as much as \u20ac200 billion ($210 billion) in special defense spending.<\/p>\n

Thyssenkrupp AG is soaring nearly 13% after reports that it will hold an extraordinary general meeting to conclude a spin-off of a minority stake in its warship division this calendar year.<\/p>\n

Freseniuis Medical Care is gaining 1.3% on stronger than expected earnings update.<\/p>\n

Deutsche Bank is up 1.4% and RWE is advancing 1.3%, while Vonovia, Bayer and Commerzbank are up 1.1%, 1% and 0.8%, respectively. HeidelbergCement is up nearly 1% <\/p>\n

MTU Aero, Deutsche Telekom, Fresenius and Siemens Healthineers are up with modest gains.<\/p>\n

Infineon is declining nearly 2%. Siemens Energy is down 1.7%, and Henkel is down 1.3%. Brenntag, Beiersdorf, Continental, Deutsche Post, Volkswagen, Daimler Truck Holding and Symrise are moderately lower.<\/p>\n

Data from Destatis showed Germany’s gross domestic product declined 0.2% in the fourth-quarter from a quarter ago, reversing a 0.1% sequential growth in the third quarter.<\/p>\n

On a yearly basis, GDP dropped by calendar-adjusted 0.2%, as estimated, after falling 0.3% a quarter ago.<\/p>\n

Price-adjusted GDP was down 0.4% year-on-year in the fourth quarter, in contrast to the 0.1% growth logged each in the preceding two quarters.<\/p>\n

Exports of goods and services were down 2.2% sequentially, while imports of goods and services grew 0.5%.<\/p>\n

Final consumption expenditure registered a quarterly increase of 0.2%, with the 0.4% rise in government spending outpacing household final consumption expenditure growth of 0.1%.<\/p>\n

For the whole year of 2024, the statistical office confirmed the year-on-year decline of 0.2%. <\/p>\n<\/p>\n

Market Analysis<\/p>\n<\/div>\n