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After a setback driven by economic concerns, the German stock market is expected to initially recover slightly on Monday.

After a setback driven by economic concerns, the German stock market is expected to initially recover slightly on Monday.

Frankfurt Stock Outlook: Slight relief after US labor market shock

The X-Dax DE000A0C4CA0 signaled a 0.7 percent gain to 23,580 points for the leading index in Germany about an hour before trading began. The Eurozone's leading index, the EuroStoxx 50 EU0009658145, is poised for a similar increase.

Last Friday, mixed business figures from major companies and the US labor market report weighed on investors' nerves. The surprisingly weak jobs data fueled doubts about the resilience of the US economy, which so far seemed to be more or less immune to all problems, explained analyst Stephen Innes of SPI Asset Management.

The dismissal of the head of the Bureau of Labor Statistics by US President Donald Trump is also causing uncertainty. This could well raise doubts about key economic data in the future.

Despite recent losses, the DAX is still recording a gain of around 18 percent this year. "The correction was overdue," said Christoph Geyer, an expert in technical analysis of financial markets. However, Friday's weak performance could be just a foretaste of what's to come until the end of September in what is already a typically weak stock market phase.

After a weaker third quarter, automotive supplier Stabilus DE000STAB1L8 is becoming more cautious about its forecast for the 2024/25 fiscal year. Revenues shrank by almost ten percent year-on-year in the three months ending in June. Adjusted operating profit (EBIT) fell significantly. For the current fiscal year ending in September 2025, the company now expects the lower end of its respective target range. Stabilus shares recently fell 5.7 percent in pre-market trading on the Tradegate trading platform.

Mercedes-Benz shares (DE0007100000) could be worth a look after rating agency S&P confirmed its "A-1" rating for the automaker but lowered its outlook to "Negative." This signals that while S&P considers the Stuttgart-based company's current financial situation to be solid, it has concerns about its future development.

Hensoldt DE000HAG0005 shares could attract investor interest following an upgrade from analyst firm Jefferies. Their experts have upgraded the defense electronics provider's stock from "underperform" to "hold" and raised their price target from €60 to €92.

Lufthansa shares DE0008232125 rose 1.8 percent on Tradegate. British bank Barclays upgraded the airline's stock from "underweight" to "equal weight" and raised its price target from €5.20 to €7.20.

Evotec shares DE0005664809 rose by 2.9 percent on Tradegate. Analysts at Van Lanschot Kempen had previously upgraded the drug developer's shares from "Neutral" to "Buy."

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