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Skerdian Meta•Tuesday, January 28, 2025•2 min read
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The German index Dax dipped yesterday on the Nvidia crash, but rebounded and closed higher for two days in a row, indicating a new record high tomorrow, considering that today Dax 30 closed near those levels.
European stock markets closed with mixed performances, showcasing resilience despite broader global uncertainties. Spain’s IBEX led gains, while France’s CAC remained stagnant. Optimism in industrials, financials, and energy sectors helped lift most indices, reflecting cautious optimism in the region’s economic outlook.
Closing Changes for European Stock Markets
- German DAX:
- Finished the session up +0.7%, leading major European indices.
- Strong performance from industrial and automotive stocks contributed to the rise.
- France’s CAC 40:
- Closed flat, with minimal movement as mixed corporate earnings tempered broader market enthusiasm.
- UK’s FTSE 100:
- Gained +0.4%, supported by a weaker pound, which boosted exporters.
- Energy stocks also saw gains following a rebound in oil prices.
- Spain’s IBEX 35:
- Jumped by an impressive +1.4%, making it the standout performer.
- Financial stocks were key drivers of the rally, alongside stronger-than-expected retail sales data.
- Italy’s FTSE MIB:
- Advanced +0.5%, buoyed by positive momentum in banking shares and optimism over fiscal reforms.
- Stoxx 600:
- Closed up by +0.4%, reflecting a modest recovery across European markets.
- Gains were driven by strength in defensive sectors such as utilities and healthcare.
So overall, European equities saw varied performances, with Spain’s IBEX leading the pack amid a strong rebound in risk sentiment, while France’s CAC lagged behind. That’s despite some negative expectation regarding the German economy from the German industry body.
Dax Chart Daily – MAs Holding As Support During Pullbacks
“Germany Faces Economic Crisis: Structural Weaknesses Threaten Recovery
The BDI industry association has issued a stark warning about the dire state of the German economy, describing it as being in the grip of a severe economic crisis. They forecast a 0.1% contraction for 2025, marking the third consecutive year of economic decline—a situation Germany hasn’t faced since its reunification in 1990. If realized, this would underscore the severity of the ongoing downturn.
The BDI emphasized that this crisis extends beyond external shocks such as the pandemic and Russia’s invasion of Ukraine. They argue that the root of the problem lies in long-standing domestic issues that have been overlooked by policymakers since 2018. Structural challenges, particularly within the industrial sector, have compounded, disrupting growth and stability.
The association is urging the German government to take swift and decisive action, particularly by investing in modern infrastructure. Such measures are seen as critical for addressing these structural weaknesses and laying the foundation for a stronger and more resilient economy in the future.
German Index DAX Live Chart
DAX
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank’s local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
www.fxleaders.com