Stock market in Germany rebounds after a week marked by pessimism
The German stock market started the new week on a positive note, with the DAX rising 1.4% to 23,743 points on Monday. This recovery follows a 2.7% loss on Friday.
Banks, defense giants, and airlines were in high demand, driving the market's growth. British bank Barclays upgraded Lufthansa, Air France-KLM, and IAG, causing shares of Lufthansa to rise 1%. European bank stocks, including Deutsche Bank and Commerzbank, experienced gains of 3.1% and 4.3% respectively. Shares of tank manufacturer Rheinmetall rose 3% due to their strong order book, while shares of Heidelberg Druckmaschinen jumped more than 7% following a strategic partnership announcement in the military business.
The performance of the German stock market was largely driven by demand for these sectors. The MDAX of mid-cap stocks gained a slight 1%, and the Euro Stoxx 50, the leading index for the eurozone, rose more than 1% on Monday.
However, the overall market trend in August has been cautious for banks, with Deutsche Bank, Germany's largest lender, historically experiencing a seasonal decline of about 3.47%. Despite this, the DAX, despite recent losses, is still up more than 19% for the year.
The defense sector, while not providing explicit recent stock market data, is seen as having opportunities for investors after the recent sell-off, according to analyst Chloe Lemarie. Jürgen Molnar of RoboMarkets, however, warned against complacency, predicting a downward overall trend despite potential signs of recovery.
The European Banking Authority found that banks in the European Union are well-prepared for a severe economic crisis. Meanwhile, concerns about Trump's erratic trade policies, economic outlook, and corporate earnings took a backseat on Monday.
Despite the varied behavior of specific sectors within the German market, the overall trend through mid-2025 and early August 2025 has shown strong performance for German equities, with the DAX index rising about 20% in the first half of 2025 and remaining significantly above its levels from a year ago. However, the airlines sector lacks direct recent performance data in the sources provided.
Investors showed a keen interest in sectors such as finance, banks, defense, and airlines, leading to the growth of the German stock market. For instance, shares of Lufthansa rose 1% after being upgraded by Barclays, while European bank stocks like Deutsche Bank and Commerzbank also experienced significant increases. On the other hand, the defense sector, which presents opportunities for investors, did not provide explicit recent stock market data, indicating a potential area for further investing in the stock-market.
