The DAX 40 recovered mid-session on Friday, climbing 0.5% to above 24,600 after initially struggling. Market sentiment improved as concerns about AI disruption lessened. European markets benefitted from less exposure to the tech sector, while investors monitored earnings reports. Defense stocks performed strongly, but auto stocks declined due to restructuring expense concerns in the sector.
- DAX 40 rose 0.5% to surpass 24,600 after a weak start.
- Global concerns over AI-driven disruption eased.
- European indexes were supported by comparatively lower exposure to the tech sector.
- Investors continued to watch the earnings season closely.
- Renk surged 8% after an upgrade from BNP Paribas.
- Rheinmetall and Hensoldt advanced 4% and 2.7%, respectively.
- Bayer gained over 2% following positive research results.
- Auto stocks (Volkswagen, BMW, Mercedes-Benz Group, Porsche) were among the biggest losers.
- Stellantis’ restructuring expenses impacted auto sector sentiment.
The DAX’s performance appears tied to shifting investor sentiment and sector-specific news. Strong performances in defense and pharmaceuticals offset losses in the automotive industry. Upgrades and positive drug trial results can trigger rallies in individual stocks, while wider industry concerns, like restructuring costs, can drag down related companies.