The DAX index in Germany experienced a decline of 0.59% in Friday's trading session, as market analysts scrutinize the latest labor market data from Europe's largest economy. Recent figures released from the Federal Employment Agency indicate that the unemployment rate in Germany saw a modest increase in December 2024, with an additional 10,000 individuals finding themselves unemployed.
This figure, while lower than the anticipated rise of 15,000, highlights a cautious trend. Moreover, the seasonally adjusted unemployment rate held steady at 6.1%, slightly better than the predicted 6.2%. Economist Claus Vistesen from Pantheon Macroeconomics reflected on the data, stating, "In one line: Better than markets expected, but surveys warn of accelerating weakness in Q1." He noted the inevitability of a rising unemployment rate in Germany, based on survey results which indicate a stagnant economic landscape. As we look ahead to the upcoming week, investors and analysts will be paying close attention to the economic calendar, which includes vital inflation reports from Germany and the eurozone at large.
Additionally, business survey results and international trade updates are set to be released, which could further clarify the economic outlook for Germany. In the corporate sector, HelloFresh has shown resilience, with shares climbing by 1.14% following a supportive hold rating reiterated by MWB Research, which also adjusted the price target upward from 10 euros to 12.50 euros.
MWB Research commented, "The company's dual focus on stabilizing the core meal-kit business and scaling its Ready-to-Eat (RTE) segment is central to its long-term strategy. While premiumization and efficiency measures in the meal kit business should provide improving margins, RTE offers significant growth potential, despite margin pressure through growth initiatives." Meanwhile, Bloomberg News highlighted a setback for Volkswagen as its ID.4 electric crossover was removed from a list deeming it eligible for US tax credits by the Department of Energy and Environmental Protection Agency.
This news impacted Volkswagen's shares, which fell by 0.67%. Investors are eagerly monitoring these developments to gauge their longer-term implications on the market and corporate performance..