FRANKFURT (dpa-AFX) – After a minor pullback midweek, the DAX opened Thursday with little change. The market is lacking clear directional impulses, which could arrive in the afternoon with economic data releases from the United States.
The German benchmark index slipped by 0.1 percent to 25,269 points in morning trading. On Tuesday, the DAX had, for the first time in its history, surpassed the 25,500-point mark during a seven-day record rally. It then eased moderately on Wednesday.
The MDAX, which tracks mid-cap stocks, rose by 0.1 percent to 31,805 points in early Thursday trading. Meanwhile, the EuroStoxx 50, the leading index for the eurozone, gained 0.4 percent to 6,027 points.
Following economic data released the previous day, which observers said argued against imminent further interest rate cuts in the world's largest economy, attention is likely to focus today on the Empire State and Philadelphia Fed indices, as well as the weekly labor market data.
"President Trump has once again called for significant interest rate cuts, even though both the inflationary environment and economic developments suggest a more cautious approach," wrote analysts at Landesbank Helaba. The upcoming data should provide the first and important indications of sentiment in the manufacturing sector at the start of the new year. "After recent disappointments in sentiment indices, improvements are now expected."
In light of the drop in the unemployment rate in December and initial jobless claims remaining at very low levels, along with increased retail sales, "there is nothing to suggest another rate cut as early as this month," they wrote. Helaba analysts Ralf Umlauf and Ulrich Wortberg also pointed out that the market currently expects two small rate cuts by the end of 2026, but these are already fully priced in.
Before the U.S. earnings season continues, semiconductor companies in Germany are likely to be worth watching. Aixtron shares rose by 4.4 percent, while Suss and Siltronic gained over five percent in the SDAX. TSMC exceeded expectations with strong profit growth in the fourth quarter of 2025 and remains optimistic for the first quarter. The world's leading contract chipmaker is also anticipating high investments in 2026. According to market commentary, this confirms the optimistic signals from chip designers regarding demand for AI hardware.
Adidas was among the top performers in the DAX, up 1.6 percent, benefiting from a positive note by Santander Bank, which initiated coverage of the sportswear manufacturer with an "Outperform" rating.
Henkel's preferred shares slipped by 0.6 percent. Rival H.B. Fuller had missed analysts' expectations with its outlook for the 2026 fiscal year the previous day. The U.S. adhesives manufacturer also reported mixed results for the fourth quarter of 2025./ck/mis
