European stock markets are showing moderate gains today despite disappointing economic data from Germany. Recent statistics reveal that Germany’s economy contracted by 0.1% in the second quarter compared to the previous quarter, a worse outcome than anticipated. This slowdown follows a 0.3% growth in the first quarter and raises concerns about the health of the continent’s largest economy. Year-on-year GDP remained almost flat compared to the same period last year, further underscoring the fragile state of the current economic environment.
Despite these discouraging figures, European stock indices are holding steady and recording modest increases. The German DAX is up roughly 0.15%, suggesting a partial rebound after earlier declines fueled by economic uncertainty. The Euro Stoxx 50, which tracks leading companies across the euro area, climbs 0.3%. The French CAC 40 rises by 0.22%, while Spain’s IBEX 35 leads gains with a 0.5% increase, and Italy’s FTSE advances 0.45%.
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Create account Try a demo Download mobile app Download mobile appMarket participants remain cautious ahead of Fed Chair Jerome Powell’s speech in Jackson Hole, hoping for insights on monetary policy following recent hawkish signals and weak US labor market numbers. As a result, European markets are navigating a phase of profit-taking mixed with consolidation after recent volatility.
Source: xStation5
Volatility levels across European markets remain elevated. Source: xStation
The German DE40 index is consolidating within a tight range around 24,370 points. The daily chart indicates prices are trading just above the 25-day (green) and 50-day (purple) exponential moving averages, which act as key support levels. Additionally, the 100-day moving average (orange) lies further below, representing a longer-term support zone.
Source: xStation
Company News:
Rheinmetall (RHM.DE) gained approximately 0.7%, benefiting from positive momentum in the defense sector. The company continues to profit from increased defense spending across Europe, supported by a strong order book and growing investment in advanced military technology, which bolsters investor confidence.
Südzucker (SZU.DE) declined around 2% after revising its full-year outlook downward due to weaker performance in sugar, biofuel, and specialty product divisions. The company pointed to pressure from low sugar prices and rising material costs that are squeezing margins.
Hensoldt (HAG.DE) rose 3.3% following an upgrade in analyst recommendations. The improved earnings and stabilization in its defense technology segment have lifted investor sentiment. As a key security sector player, Hensoldt’s participation in European defense projects positions it for further growth amid increasing defense budgets and demand for advanced radar and electronic systems.
RENK Group (R3NK.DE) increased 1.5% after its rating was raised. The company confirmed a robust order pipeline and better-than-expected financial results, supporting margin stability. RENK benefits from positive market sentiment linked to growing security concerns in Europe and the US, potentially driving higher demand for its products.
Corporate news from the German stock exchange. Source: Bloomberg Financial LP
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