On Thursday, stocks in Germany showcased a notable recovery, with the blue-chip DAX index climbing 1.70% by closing time. This rally occurred as investors measured the latest economic data alongside corporate earnings and trading updates, aiming to navigate the current market landscape. Recent results compiled by S&P Global from the HCOB PMI data revealed that Germany's construction sector has further dipped into contraction territory for October, facing faster declines across its three primary categories.
The HCOB Germany Construction PMI Total Activity Index registered at 40.2 in October, a decrease from 41.7 in the preceding month. Conversely, there was a slight uptick in activity within the eurozone's construction sector, with the HCOB Eurozone Construction PMI Total Activity Index reaching 43 this October, compared to 42.1 in the prior month.
Despite this minor improvement, the industry continues to face contraction challenges. In political developments, German Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner, leading to Lindner's FDP party exiting the coalition. Scholz mentioned that snap elections could potentially be scheduled as soon as March 2025. Deutsche Bank Research highlighted that "with an early election now on the cards, a key question is whether this could lead to a step change in Germany's fiscal policy." In corporate updates, Heidelberg Materials ($HEI.DE) experienced a significant jump of 6.36% at closing, following the report of increased revenue and operational results year over year for the third quarter.
The German building materials firm has also updated its projections for the full-year 2024..