The German DAX index saw an increase at the end of the week, thanks to improved business sentiment and positive private sector data. The Ifo Business Climate Index rose for the first time in six months, indicating a slight recovery in German economic confidence. The Ifo Institute for Economic Research noted that while companies were more satisfied with their current situation, caution still remained regarding future prospects.
The manufacturing sector in Germany showed signs of stability, with companies becoming slightly less pessimistic about future conditions. However, capacity utilization remains lower than the long-term average. The service sector saw more decisive improvements, particularly in logistics, tourism, and IT.
Stronger-than-expected PMI surveys revealed a faster-than-expected expansion in the services sector and a slower rate of contraction in manufacturing. This shift could indicate a path towards recovery for the German economy.
German equities experienced a mild rally, with top performers including Daimler Truck Holding AG, Siemens Energy AG, and Puma SE. Despite this, the DAX is down for the week, remaining below its recent all-time high.
Looking ahead, market attention is focused on major corporate earnings, including Volkswagen AG’s quarterly results. Analysts project a decrease in earnings and revenues compared to the same quarter last year. Volkswagen shares have declined significantly from their 2021 peak. Investors will be watching closely for insights into the company’s performance and outlook.
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