Several reasons underpin these gains, including low expectations at the start of the year, the exposure to the United States economy and the upcoming snap election, analysts told CNBC.
In late October, for instance, SAP shares hit an all-time high after the company raised its full-year targets and posted strong numbers for it cloud business. At the time, CEO Christian Klein said SAP was"confidently" raising the outlook and added"we are making strong progress on Business AI.""DAX companies generate a higher share of their revenue in the U.S. than in Germany.
This is particularly relevant when manufacturing, traditionally a big component of the German economy, has been hit hard throughout 2024. The latest PMI data showed further contraction for the embattled sector in December. "We don't know the actual political agenda," she said, noting it is unclear how many parties will be forming the upcoming government, but lower regulations and relaxing the debt brake may help improve sentiment.