German Stocks Weak Amid Tariff Concerns and Price Increases

German stocks show weakness as investors take profits following recent gains. Cautious sentiment persists due to anticipated U.S. tariffs. Investors also react to rising wholesale prices in Germany, impacting market dynamics.

Date: 14-02-2025

AI Rating: 5

**Earnings Updates Impacting Sentiment**
The report indicates a cautious mood among investors in German stocks, primarily due to profit-taking after recent gains and concerns over potential tariffs imposed by the United States. This uncertainty can lead to heightened volatility in stock prices.

Furthermore, the report highlights that wholesale prices in Germany rose by 0.9% year-on-year in January 2025, faster than the previous month, suggesting a potential increase in production costs that could pressure profit margins for companies dependent on these wholesale goods. The rise in wholesale prices, particularly in non-ferrous metals and semi-finished products, may impact various sectors differently, affecting their profitability.

**Stock Movements**
Positive shifts were noted in stocks such as Rheinmetall (+8%), Commerzbank (+2%), and others; this reflects resilience in certain parts of the market despite the overarching concern of tariff implications. Conversely, substantial losses were observed for firms like Fresenius Medical Care (-4%) and others within the range of -1% to -1.5%.

As investors anticipate preliminary reports on Euro zone GDP growth and employment for Q4, the outlook remains cautious. Overall, the mentioned data reflects variations among sectors, indicating selective investor confidence while being wary of broader economic concerns.

Stocks: RHM CBK HRC SIE VOW PUC FME QIA ALV DB1 HNR1 SRT ZAL SIEGY CON MTU ADDYY MUV2 VNA