30 pm, a decline of 1.3 percent from the previous trading day. The index was led by a mixed bag of performers, with Brenntag, Symrise and Porsche at the top, while FMC, Commerzbank and Deutsche Telekom lagged behind. FMC’s significant losses were largely attributed to the company’s announcement to extend its cost-cutting measures, aiming to achieve permanent savings of 1.05 billion euros by the end of 2027, a 300 million euro increase from the previous plan and a two-year longer timeline.
Contrary to the overall uncertainty, the Zentrum für Europäische Wirtschaftsforschung (ZEW) reported a surprising increase in medium-term economic expectations from financial analysts and institutional investors. Thomas Gitzel, chief economist at the VP-Bank-Group, attributed this to a series of positive economic developments in Germany, but expressed skepticism about the prospects, citing the numerous crisis hotspots, including the escalating conflict in the Middle East, the potential blockade of the Strait of Hormuz and the ongoing trade tensions with the US.
Gitzel noted that the situation could still improve, with the possibility of a resolution in the Middle East and the trade disputes with the US being addressed. He also highlighted the German government’s large infrastructure program as a potential driver of growth. The surveyed financial market experts, however, remained optimistic, believing that the economic hopes would not be a fleeting phenomenon.
The euro was slightly weaker against the US dollar, trading at 1.1563, with the dollar valued at 0.8648 euros. The Brent crude oil price, meanwhile, surged, reaching 74.41 US dollars per barrel, a 1.6 percent increase from the previous day’s close.