German shares concluded another trading day in the red as consumer confidence in the eurozone's leading economy plummeted to its lowest level since May amidst persistent economic uncertainty. The blue-chip DAX index recorded a 0.18% decrease by Wednesday's end. The GfK consumer climate indicator fell to -23.3 points in November 2024, down from a revised -18.4 points in October 2024, diverging from the consensus estimate of -18.6 points.
Rolf Bürkl, a consumer expert from the Nuremberg Institute for Market Decisions, commented on the troubling figures, noting that they echo levels seen in December 2023. "Consumer uncertainty has surged recently, marked by an increasing inclination to save. Job security worries in Germany are intensifying, driven by reported job cuts in the industry and the shifting of production overseas.
There has also been a notable rise in insolvencies lately," Bürkl elaborated. On another front, nearly 90% of 180 economists surveyed by the ifo research institute believe that the German economy will face significant challenges due to US President-elect Donald Trump's trade policy. In corporate news, Beiersdorf ($BEI) experienced a 2.06% increase after MWB Research upgraded the stock from hold to buy, with a price target of 143 euros.
Analysts stated, "Despite somewhat disappointing Q3 results, Beiersdorf's robust performance and strong global demand reaffirm its growth potential." Meanwhile, Volkswagen ($VOW, $VOW) plans to exit China's Xinjiang region by selling all its operations there to Shanghai Motor Vehicle Inspection Certification at undisclosed terms.
The German car manufacturer closed the day down 0.15%..