German shares concluded trading positively on Monday as investors brace for significant economic data expected this week, amid an active corporate earnings season. The blue-chip DAX index gained 0.35% by the end of the trading session. Key economic data set to be released this week includes the latest gross domestic product figures and inflation metrics for Germany and the broader eurozone.
Meanwhile, global investors are also focusing on the October labor market report to assess the trajectory of monetary policy. "We expect the FOMC to skip the January FOMC meeting and maintain policy on hold, briefly shifting to a quarterly pace of 25 basis point rate cuts. We do not consider this adjustment to be a significant change in our outlook; we had projected a January skip two months ago due to our anticipation of firming inflation this fall," UBS remarked in a note. On the corporate side, Porsche ($P911) experienced a decline, landing at the bottom of the index with a drop of 4.95% by market close.
Deutsche Bank upheld a buy rating for the stock, setting a price target of 85 euros following its third-quarter update. Analysts predict that the German luxury automaker will report improved earnings for the fourth quarter, buoyed by better sales volumes. "Porsche currently has the smallest exposure among German automakers to the Chinese market, with sales exposure estimated around 14% and possibly even lower on EBIT (DBe).
Thus, after adjusting our forecasts, the company remains one of our top choices heading into 2025," Deutsche Bank added..