German equities experienced a decline on Thursday following remarks from US President Donald Trump regarding the imminent announcement of 25% tariffs on goods from the European Union. This statement served as a catalyst for a broader retreat across the EU, with the DAX index shedding 1.19% by the close of trading.
In response to the changing landscape, experts at ING stated, "The EU is better prepared to tackle Trump 2.0, but it still faces a complex challenge in countering potential US tariffs. While the bloc has several options at its disposal—including retaliatory tariffs on key US exports and the implementation of a digital services tax—the effectiveness of these measures will depend on its ability to act swiftly and cohesively, with a reliance on widespread member state support." Turning towards macroeconomic elements, key inflation reports are expected to take center stage in Europe on Friday, with preliminary figures anticipated from Germany, France, and Italy.
Analysts predict that annual consumer price growth in Germany will hold steady at 2.3% in February, reflecting a stable inflationary environment amid international pressures. In the corporate arena, Beiersdorf, identified by its stock symbol ($BEI), saw an impressive surge of 3.30% at market close, fueled by record sales of 9.9 billion euros in 2024, largely attributed to its consumer business unit.
The personal care products giant projects organic sales growth of 4% to 6% for the upcoming year. Similarly, Barclays reiterated its optimistic overweight stance on the energy giant E.ON ($EOAN), taking note of its encouraging forecasts for 2025 and 2028. They highlighted that potential catalysts for the company, following the German elections, could lead to more favorable conditions.
The stock, however, closed lower by 1.21% on Xetra. Barclays elaborated, saying, "Rather than implying risks to German network regulations and tariffs, the CDU/CSU proposals (which include network tariffs partly covered by the government, requirements for favorable German network returns, and expanding the network regulator's role) appear to be constructive for network companies like E.ON and could support our overall positive investment case.
This is why we think the conclusion of the German federal election should be an important catalyst, as it should significantly reduce related political uncertainty for E.ON." Overall, the current environment showcases a mix of strategic corporate maneuvers in response to broader tariff concerns and macroeconomic indicators that investors are urged to closely monitor..