German stocks rise as DAX gains 0.3%, tracking European markets amid US-EU tariff deadline. Siemens hits 16-week high, while producer prices drop 1.3%. Investor sentiment reaches highest since 2022.
The DAX index climbed 0.3% on Friday, reaching approximately 24,400 points, marking its second consecutive day of gains in line with broader European market trends. Investors remained attentive to corporate earnings reports from key European companies while monitoring trade negotiations between the U.S. and the European Union. A critical deadline looms on August 1, when a proposed 30% tariff on U.S. imports from the EU could take effect. Among top performers, Henkel, Zalando, BASF, and Rheinmetall each gained nearly 1%, while Siemens Energy and Deutsche Bank declined by 1.3% and 0.7%, respectively. For the week, the DAX posted a 0.5% increase.
Siemens shares reached a 16-week high, trading at 228.05 EUR—the highest level since March 2025. Over the past four weeks, the stock rose 7.08%, and over the last 12 months, it surged by 32.54%.
German producer prices fell by 1.3% year-on-year in June 2025, marking the steepest decline in nine months and the fourth consecutive monthly drop. The decrease was primarily driven by a 6.4% reduction in energy costs, with notable declines in electricity (-8.8%), mineral oil products (-7.7%), and natural gas (-6.9%). Conversely, prices for non-durable consumer goods rose by 3.6%, while durable goods and capital goods each increased by 1.7%. Excluding energy, producer prices edged up 1.3%. On a monthly basis, the index rose 0.1%, slightly surpassing expectations.
The ZEW Indicator of Economic Sentiment for Germany rose to 52.7 in July 2025, its highest level since February 2022, reflecting growing optimism among analysts.
"Despite lingering trade tensions, nearly two-thirds of experts anticipate an economic improvement in Germany,"noted ZEW President Prof. Achim Wambach. He attributed the positive outlook to potential resolutions in U.S.-EU tariff disputes and anticipated government stimulus measures. Meanwhile, the current conditions index improved to -59.5, its highest since June 2023.
Frankfurt’s DAX briefly attempted a recovery but ultimately closed 0.2% lower at 24,048, marking its fifth consecutive decline. Trade uncertainties and weak corporate earnings weighed on sentiment, particularly in the automotive sector, where Volkswagen, Porsche AG, and Mercedes-Benz Group saw significant losses. Additionally, Brenntag dropped 2.6% following a Deutsche Bank downgrade.
Linde shares fell to 391.60 EUR, an 11-week low, with a 1.74% decline over the past four weeks and a 3.99% drop over the last year.
