German Stocks Surge as Low Valuations and US Exposure Drive Gains

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.Sabrina Reeh, senior portfolio manager at DWS, told CNBC on Wednesday that valuations were relatively low at the start of the year and the sentiment was 'muted' across Germany equities, but that earnings developments ultimately came in 'better than expected', whose shares rose nearly 59% this year.

Maximilian Uleer, head of European equity and cross asset strategy at Deutsche Bank, told CNBC that the company has contributed 8% to the year-to-date performance of the German market. 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 its 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. Despite concerns about potential tariffs, a significant portion of that revenue is produced local for local and likely not subject to tariffs,' Deutsche Bank's Uleer said. Though the collapse of the German government in November largely emerged as a surprise, analysts recognize the development could become a positive for equities. 'From a market perspective, snap elections are perceived as an opportunity for more structural reforms and higher spending, be it via a shift within governmental spending priorities or via a higher fiscal deficit,' Uleer also said. 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. DWS' Reeh mentioned how the snap election helped with the overall sentiment toward the German marke

ประเทศไทย ข่าวล่าสุด, ประเทศไทย หัวข้อข่าว

Similar News:คุณยังสามารถอ่านข่าวที่คล้ายกันนี้ซึ่งเรารวบรวมจากแหล่งข่าวอื่น ๆ ได้

German Stocks Surge Despite Economic HeadwindsDespite challenges like a struggling manufacturing sector and the collapse of the German government, the German stock market has seen impressive gains in 2024. Analysts attribute these successes to low initial expectations, exposure to the strong US economy, and the possibility of structural reforms under a new government following snap elections.
แหล่ง: NBCDFW - 🏆 288. / 63 อ่านเพิ่มเติม »

German Stocks Soar in 2024: Low Expectations, US Exposure, and Election BoostThe German stock market has experienced a remarkable surge in 2024, driven by a combination of factors including low initial expectations, strong performance from US-exposed companies like SAP, and the anticipation of a snap election that could lead to structural reforms and increased spending.
แหล่ง: NBCLA - 🏆 319. / 59 อ่านเพิ่มเติม »

Stocks Week Ahead: Extreme Optimism in Markets Could Meet a Volatility SurgeMarket Overview Analysis by Michael Kramer covering: Euro US Dollar, British Pound US Dollar, US Dollar Japanese Yen, US Dollar Swiss Franc. Read Michael Kramer's latest article on Investing.com
แหล่ง: Investingcom - 🏆 450. / 53 อ่านเพิ่มเติม »

Stock market today: Asian stocks track Wall Street gain with Nvidia report and bitcoin surgeAsian stock rise following gains on Wall Street after market superstar Nvidia and other companies said they’re making even fatter profits than expected.
แหล่ง: wjxt4 - 🏆 246. / 63 อ่านเพิ่มเติม »

Metals: LME lead stocks surgeLME lead stockpiles surged to the highest level since 2013 yesterday after a second consecutive day of big inflows into the exchange’s sheds in Singapore, ING’s commodity analysts Warren Patterson and Ewa Manthey note.
แหล่ง: FXStreetNews - 🏆 14. / 72 อ่านเพิ่มเติม »

Adani Group Stocks Surge Amid U.S. Indictment ControversyAdani Green Energy's shares jumped as much as 19% following a statement refuting bribery allegations against the company's chairman, Gautam Adani. Other Adani Group companies also saw significant gains, reflecting a cautious improvement in investor sentiment despite potential ongoing volatility.
แหล่ง: NBCNewYork - 🏆 270. / 63 อ่านเพิ่มเติม »