The Frankfurt Stock Exchange rose 0.57% on Tuesday amid fears of a US government shutdown if Congress fails to reach an agreement on the budget.
The DAX 40, Frankfurt Stock Exchange’s selective index, gained 0.57% to 23,880.72 points, accumulating a gain of approximately 20% so far this year despite the weakness of the German economy.
The US tariff policy and the strength of the euro, which are hurting German export companies, have also been felt on the Frankfurt Stock Exchange.
Arms manufacturer Rheinmetall leads gains on the Frankfurt Stock Exchange with a 220% rise so far this year, followed by Commerzbank with an increase of more than 100%.
Investors in German equities opted for caution due to concerns about the US government shutdown, which may delay the release of important economic data such as Friday’s labor market report.
The US government could be shut down on Wednesday if Congress fails to reach an agreement on the budget before then.
Harmonized inflation rose in Germany in September to 2.4% year-on-year.
Retail sales in Germany fell by 0.2% in August compared to the previous month.
The number of unemployed people in Germany rose by 148,000 in September to 2.955 million, compared to September last year, and the unemployment rate rose to 6.3% (6% a year earlier).
Truck manufacturer Daimler Truck lost 1.9% to €35, Mercedes-Benz fell 0.8% to €53.47, and Continental fell 0.5% to €56.12 ahead of new US tariffs on heavy trucks coming into effect on October 1.
Aircraft engine manufacturer MTU Aero Engines rose 4.6% to €390.90, real estate portal Scout24 gained 2.1% to €106.60, and GEA advanced 2% to €62.85.
The Lufthansa airline group fell 7.1% to €7.2 on the MDAX index of medium-sized companies after pilots voted in favor of striking following the failure of negotiations between the Verdi services union and Lufthansa and its freight subsidiary Lufthansa Cargo over the company’s pension plan.
Lufthansa wants to increase its profitability by cutting 4,000 jobs by 2030 in administrative areas, mainly in Germany.
Source: Investing.com
