On Thursday, German shares made a recovery, participating in a global rally driven by China's commitment to new economic-support measures and improved domestic sentiment. At market closing, the blue-chip DAX index witnessed a notable increase of 1.69%. In contrast to the overall trend, BASF, a leading German chemical company, experienced a slight decline of 0.08% at closing after unveiling a new dividend policy along with fresh financial targets set for the years 2025 to 2028.
BASF aims to distribute a minimum of 2 billion euros in dividends annually through 2028, while targeting an EBITDA—before special items—in the range of 10 billion euros to 12 billion euros by that same year. Meanwhile, in China, officials reaffirmed their commitment to achieving the country’s economic goals following a strategic meeting of the 24-member Politburo.
Although specific details regarding new pledges are scarce, policymakers have expressed dedication to reversing the ongoing decline of China's property market, which has long posed challenges and negatively impacted the broader economy. Domestically, in Germany, consumer attitudes are shifting as people become less pessimistic about their economic prospects.
Recent survey results from GfK data analytics indicate a slight improvement in consumer sentiment for October, anticipated to rise to -21.2 points, up from a revised -21.9 points for September. Rolf Bürkl, a consumption expert at the Nuremberg Institute for Market Decisions, commented, "The consumer climate has not improved since June 2024, when it hit -21 points.
Therefore, the slight increase cannot be interpreted as the beginning of a noticeable recovery. The consumer sentiment remains largely unstable due to various negative factors, including wars, crises, inflation, and in recent months, challenges within the labor market." As market dynamics continue to play out, the economic landscape in Germany and the measures being put in place to address these challenges will remain critical for investors and stakeholders alike..