German Stocks Volatile Amid Trade War Concerns and Earnings

German stocks are experiencing volatility as investors are cautious due to ongoing trade war concerns. Focus on earnings updates is essential as companies like Infineon report stronger-than-expected results, which may influence market trends.

Date: 04-02-2025

AI Rating: 6

**Overview of Market Sentiment**

The current report highlights the volatility in the German stock market, with a specific focus on earnings and global trade tensions affecting investor confidence. Investors are cautious, especially in light of new tariffs imposed by the US and China, creating fears of a prolonged conflict that could impact global economic growth.

**Earnings Impacts**

A notable positive development comes from Infineon, whose stock has soared nearly 11% after the company upgraded its full-year revenue outlook. The stronger-than-expected quarterly results seem to alleviate concerns about waning automotive demand. Infineon forecasts a fiscal second-quarter revenue of 3.6 billion euros, indicating solid revenue growth potential.

**Market Movements**

While Infineon shows strength, other companies like Merck, Rheinmetall, and banks such as Deutsche Bank are witnessing declines of 1 to 1.5%. The overall market remains impacted by external factors such as the uptick in Germany's 10-year Bund yield to above 2.4%, which may also exert pressure on stock valuations.

Stocks: IFNNF DB BAYRY MRK DMLRY FREHF SIEGY BAMXF VOW ADHIY