The German capital market remains under the influence of concerns related to the new tariff policy of the United States and the European Union's response to these actions. Despite overall uncertainty, the beginning of 2026 brings significant changes in the structure of car sales, where electric models are recording double-digit growth, despite a general weakening of demand for new vehicles in Europe. Investors are also reacting to financial reports from giants such as Fresenius Medical Care and MTU Aero Engines.
Boom in the Defense Sector
Four years after Russia's aggression against Ukraine, defense companies have become a key element of investment portfolios, recording record valuation increases.
MTU Aero Engines Crisis
The largest share price drop in nearly a year following the publication of weak financial forecasts regarding the company's cash liquidity.
Electric Vehicles Counterattack
Despite the decline of the entire automotive market in the EU, the electric vehicle segment is growing at double-digit rates, and the Škoda Elroq dominates the rankings.
The German DAX stock index is grappling with high volatility stemming from unclear trade prospects between the United States and the European Union. Investors are closely monitoring reports of potential tariffs, which translates into cautious sentiment at the market open. Against this backdrop, defense companies such as Rheinmetall stand out, undergoing a thorough rebranding process in the eyes of financial institutions and private investors four years after Russia's invasion of Ukraine. In the technology and industrial sector, sentiment is mixed. Shares of aircraft engine manufacturer MTU Aero Engines lost over 5% in value following the publication of disappointing forecasts regarding free cash flow for 2026. Meanwhile, Fresenius Medical Care reported a 23% increase in operating profit due to deep restructuring and savings, although the stock market reacted to this data with an initial share price discount. The automotive sector shows high dynamism in the area of electromobility. Although the entire European market for new cars shrank by 3.9% (registrations at just under 800,000 units), sales of electric cars in Germany increased by nearly a quarter. An interesting phenomenon is the success of the Škoda Elroq model, which unexpectedly outpaced competitors from the VW Group, becoming the most discussed electric car in January on the German market. The German automotive industry is undergoing its greatest transformation since the invention of the internal combustion engine, trying to catch up to manufacturers from China and the USA in the battery-powered vehicle segment. „UBS analyst struggles with Rheinmetall's sales outlook.” — UBS analyst 23.8% — increase in electric vehicle registrations in Germany It should be emphasized that the stock market situation is dynamic, and trading volumes in the first hours of trading do not allow for a clear forecast of the session's close. Nevertheless, a clear division is visible between companies benefiting from the energy and defense transformation and those suffering from restrictive monetary policy and trade barriers.