US Government Shutdown Ends, DAX Investors Await New Catalysts

The recent resolution of the partial shutdown of the U.S. government has not spurred any immediate reaction on the DAX, Germany's leading stock index. As of Thursday morning, the DAX remained steady at 24,376 points, just shy of its record high of 24,771 points. The shutdown, which lasted 43 days, concluded with the President signing a temporary budget passed by Congress. This funding is only secured until the end of January, leaving open the possibility of another shutdown in February if a permanent budget is not agreed upon. Despite this uncertainty, markets had already reacted positively to news of the shutdown's impending end, with the Dow Jones reaching new highs and the DAX showing strength throughout the week.

Market Analysis

Thursday also saw a focus on corporate earnings, with several significant reports from major German companies. Notably, Deutsche Telekom, Merck KGaA, and Siemens released their quarterly results. Merck KGaA reported surprisingly robust earnings for the third quarter, overcoming adverse currency effects. The stock surged nearly 6% as JPMorgan analyst Richard Vosser praised the company's strong performance. In contrast, Siemens shares dropped by approximately 4% due to a somewhat cautious outlook. Investors are also processing Siemens' plans to spin off its healthcare division, Siemens Healthineers, which saw its shares fall nearly 2%. Deutsche Telekom experienced a slight uptick following its quarterly report and a modestly raised forecast. Despite underperforming in its home market, positive surprises in other regions helped balance results, according to JPMorgan. Amid these reports, Bilfinger shares rebounded strongly after a month-long correction, climbing 8.5% following an increase in annual targets.

Recovery in Delivery Hero

Delivery Hero also made headlines as its shares continued to recover from February 2024 lows, boosted by recent business figures. Since Monday, the stock has risen nearly 18%, with JPMorgan analyst Marcus Diebel noting the broad fulfillment of expectations and improvement in Korea. This follows a year-to-date decline of 39% but signals a potential turnaround. In summary, while the end of the U.S. government shutdown has not significantly impacted the DAX, corporate earnings continue to provide important market insights. Investors remain keenly focused on upcoming developments, especially as companies release their financial results and strategic plans.