Germany's main stock index, the DAX, remains above the psychologically important level of 25,000 points, confirming a rebound after earlier declines. Friday's trading session brought mixed results for individual companies amid an overall optimistic mood. Meanwhile, French home appliance giant, the SEB Group, announced a significant restructuring program involving up to 2,100 job cuts. The decision stems from the need to adapt to declining demand and increasing competition. Analysts point to the continuation of a four-year boom in the defense sector, although there are voices of skepticism regarding the future revenue growth pace of some companies, such as Rheinmetall.
DAX maintained the 25,000 level
After rebounding from Thursday's levels, Germany's main stock index, the DAX, remains above the key threshold of 25,000 points, signaling improved investor sentiment towards risky assets.
Restructuring at the SEB Group
French conglomerate SEB, owner of brands WMF, Krups, and Tefal, announces a reduction of 1,700 to 2,100 positions as part of a global cost-saving program. The actions aim to improve competitiveness in the face of market challenges.
Mixed blue-chip listings
While shares of infrastructure and energy companies, such as E.ON and Siemens Energy, recorded clear gains, some technology and automotive firms began trading with slight declines, indicating investor selectivity.
Analysts skeptical of Rheinmetall
Analysts at UBS bank expressed doubts about the defense conglomerate Rheinmetall's ability to maintain its high revenue growth pace, which impacted negative sentiment towards its shares at the opening of Friday's session.
Four-year defense boom
German media emphasize that the defense sector has been experiencing uninterrupted growth on the stock exchange for four years, driven by increased defense spending in Europe following the Russian invasion of Ukraine.
The German capital market presents a mixed but generally stable picture after the main DAX index recovered and maintained the 25,000-point level. Friday's session on the Frankfurt stock exchange confirmed improved sentiment, although the dynamics of individual companies varied. Among blue-chip listings, companies from the energy and infrastructure sectors recorded clear gains. Shares of energy conglomerate E.ON began trading with a significant plus, as did Siemens Energy papers, which may reflect investor expectations for further investments in energy transition and grid modernization. Insurance companies Munich Re and Hannover Re also recorded gains. On the other hand, some technology and automotive companies experienced slight declines. Shares of software producer SAP, as well as conglomerates Volkswagen and Mercedes-Benz Group, started the session with a slight minus. This signals ongoing investor caution towards these sectors, possibly due to concerns about global demand or competitive pressure. High volatility is visible in the aviation sector. Company MTU Aero Engines, which recorded deep declines on Thursday, opened trading on Friday with a slight gain, illustrating the reaction to short-term factors and sentiment fluctuations. The DAX index, established in 1988, serves as a barometer of the German economy's condition. Its history reflects economic cycles, from the technological boom of the 1990s, through the 2008 financial crisis, to the COVID-19 pandemic. The 25,000-point level, first achieved in 2024, remains an important psychological reference point for investors.A separate, significant thread concerns the real economy. French home appliance giant, the SEB Group, owner of well-known brands such as Tefal, Krups, and WMF, announced a wide-ranging restructuring plan. The company intends to eliminate between 1,700 and 2,100 positions worldwide to adjust its cost structure to declining demand and increasing competition. This decision, announced on Friday, constitutes a telling example of the challenges facing traditional industry in times of economic slowdown and changes in consumer habits. Restructuring at SEB is occurring parallel to the ongoing four-year boom in the defense market, which has become a growth driver for part of German industry. Precisely this defense sector is the subject of lively analyst discussion. Investment bank UBS expressed skepticism regarding the further revenue growth prospects of conglomerate Rheinmetall, one of the key beneficiaries of increased defense spending. „Wir haben Zweifel an der Fähigkeit von Rheinmetall, das Umsatzwachstum in den kommenden Quartalen signifikant fortzusetzen.” (We have doubts about Rheinmetall's ability to significantly continue its revenue growth in the coming quarters.) — UBS Analyst This comment impacted the company's valuation, whose shares began trading on Friday with a slight discount. Nevertheless, the overall trend in the industry remains positive, as emphasized by German media, pointing to an uninterrupted four-year period of growth in defense company listings. Ultimately, the picture of Friday's session is a resultant of general optimism stemming from the DAX's maintenance above the key level and selective caution towards individual companies and sectors, fueled by isolated negative forecasts and news of restructurings.