Vulnerability in Dax raises alarms over potential collapse
Stock Markets: A Mixed Start to Thursday Trading
The Dax kicked off the day on a downbeat note, dropping below its record-high set in March, causing concern among investors. Breaching the 23,476 point barrier again could downgrade this recent upward trend to a "classic false breakout." The German benchmark index plunged by 0.48% to 23,413 points in early trading.
Meanwhile, the Eurozone benchmark index, EuroStoxx 50, dipped 0.68% to 5,367 points, while the MDax, the index of medium-sized German companies, climbed 0.44% to 29,627 points in the morning.
A Day of Financial Heavyweights: Siemens, Deutsche Telekom, and Allianz Release Quarterly Reports
With numerous quarterly reports taking center stage today, investors will closely watch figures from heavyweights like Siemens, Deutsche Telekom, and Allianz. Interestingly, five companies in the Dax alone saw their quarterly results punished by investors, with Merck ending the day down 4.4%. The pharmaceutical and technology giant lowered its full-year targets due to recent strong currency fluctuations.
Notable mentions include Thyssenkrupp, whose stock plummeted 9.5% to the MDax bottom after an operating result that missed expectations. Consequently, analysts now consider the company's annual targets at risk.
In addition to these financial releases, there are economic data points to evaluate, especially from the US in the afternoon, including industrial production, retail sales, New York and Philadelphia Fed surveys, and weekly jobless claims.
These updates will provide the US Federal Reserve with valuable insights to confirm or possibly change its cautious stance on potential interest rate cuts.
Sources: dpa-AFX
Enrichment: Siemens' Financials
Reputable reports suggest that Siemens reported a robust quarterly performance. Revenue increased by 6% to €19.8 billion, and net income climbed 11% to €2.25 billion for the quarter ending in March 2025. The industrial division saw a 29% surge in profit, reaching €3.24 billion, exceeding analyst expectations. However, specific market reactions such as stock price movements for Siemens have not been disclosed.
[1] dpa-AFX (2025). Fluctuating currencies cause Merck to lower full-year targets. [online] [2] Reuters (2025). Siemens beats estimates, raises industrial sentiment [online]
[2] Siemens (2025). Earnings Press Release Q1 2025 [online]
[3] Business Today (2025). Siemens Q4 net up 37%; Q3 orders up 44% [online]
[4] Siemens Energy (2025). Siemens Energy raises 2025 outlook after record Q1 [online]
Investors will closely watch the stock price movements of Siemens, a financial heavyweight releasing its quarterly report, as the company reported a robust performance with a 6% increase in revenue and an 11% climb in net income. Meanwhile, the business sector keeps a keen eye on industrial production and retail sales data points, especially from the US, which will help shape the Federal Reserve's decisions regarding potential interest rate cuts.
