DAX Recovers Amid Mixed German Economic Data and Corporate Earnings

The benchmark DAX index rose 0.28%, or 68.15 points, to reach 24,011.89 by midday Thursday, recovering from a sluggish opening. The recovery comes as investors digest a blend of corporate earnings and regional macro data, while maintaining a cautious stance ahead of the European Central Bank's next policy move. This follows the U.S. Federal Reserve's decision to keep interest rates unchanged on Wednesday. Corporate performance was fragmented across sectors. Delivery Hero surged 6% on strong first-quarter gross merchandise value growth, and Puma climbed 2.8% following a change in its CFO. Conversely, the banking sector faced pressure, with Commerzbank and Deutsche Bank sliding 2.9% and 2.8%, respectively. Volkswagen Group dipped 0.8% after reporting a decline in first-quarter profit and sales revenues due to weak production and unit sales. Economic indicators presented a conflicting picture for the region. Germany's GDP grew by 0.3% in the first quarter, exceeding the 0.1% forecast. However, retail sales plummeted 2% year-on-year in March, a sharp contrast to the 0.5% growth economists had anticipated. On a broader scale, Eurozone inflation accelerated to 3% in April, up from 2.6% in the prior month, matching market estimates. Other notable corporate movements included BASF, which remained flat despite reporting higher first-quarter profits and maintaining its 2026 adjusted EBITDA guidance between 6.2 billion and 7.0 billion euros. MTU Aero Engines gained 1.5% despite a decrease in its bottom line to EUR 200 million compared to EUR 224 million the previous year.