Tuesday saw a positive close for stocks in Germany, with the blue-chip DAX index climbing 0.57%. This uptick comes as the earnings season in Europe progresses amid the conclusion of presidential elections in the United States. The logistics behemoth Deutsche Post, operating under the brand name DHL Group, experienced a significant drop of 4.31% in its shares after reporting a decline in consolidated net profit for the third quarter compared to the previous year.
Additionally, the company has revised its outlook for the entirety of 2024, attributing this adjustment to the adverse impact of weak economic dynamics on business-to-business volumes. DHL Group's Chief Financial Officer, Melanie Kreis, stated, "We have been working without any economic tailwind since the end of 2022.
This makes our continued focus on cost and capex control, price adjustments, and the fine-tuning of our network even more important. Our sales, earnings, and free cash flow performance in the third quarter show that our measures are working." As the market remained relatively calm in Germany and the broader eurozone regarding economic developments, attention turned to the presidential elections in the world's largest economy.
Commentary surrounding the potential outcomes suggested that a win for Harris could result in a weaker US dollar, benefitting currencies like the euro, Canadian dollar, and Australian dollar. Conversely, a Trump victory, especially if proceeding without the House of Representatives or resulting in a contested outcome, could present challenges for the market.
Recent analysis from the IMF cautioned that the US economy might be 1% weaker than the baseline by 2026 should Trump implement tariffs, an effect that could not be neutralized by tax cuts. Poll results are not anticipated to be finalized until the upcoming weekend, closely following the monetary policy decision expected from the US Federal Reserve on Thursday, where a rate cut from the Federal Open Market Committee is widely anticipated..