German equities faced a downturn on Thursday as a fresh warning of impending US tariffs on wine, champagne, and various alcoholic beverages imported from the European Union overshadowed earlier market gains. This setback mirrored a broader reduction in equity indices across Europe, with the blue-chip DAX index closing 0.48% lower.
In a recent social media announcement, US President Donald Trump signaled a potential 200% tariff on 'all wines, champagnes, and alcoholic products' sourced from France and other EU nations. This move is particularly concerning as the European Union countermoves with planned tariffs on American whiskey.
The EU indicated that these retaliatory tariffs would take effect from April 13, while maintaining a willingness to engage in negotiations. From a macroeconomic perspective, the euro area's monthly industrial production figures showed a commendable rise of 0.8% in January, marking a recovery from a revised decline of 0.4% from the previous month.
This growth also outperformed expectations, which had anticipated a 0.6% increase. However, when viewed annually, the industrial output in the eurozone remained unchanged. Commenting on the evolving industrial landscape, ING stated, 'The outlook for industrial production is shifting, but the question is when real relief is going to come.
Overall, the light at the end of the tunnel has become stronger, but the timeline for reaching the end remains as ambiguous as ever.' In corporate developments, Daimler Truck Holding ($DTG) experienced a significant drop of 4.44%, making it the worst-performing stock on the index. This decline followed the US Environmental Protection Agency's announcement regarding an examination of potential reversals to vehicle emissions regulations that were instituted during the prior administration. Meanwhile, Hannover Re ($HNR1) reported a notable rise in both its net income and reinsurance revenue for the year 2024.
This robust performance has enabled the company to increase its total dividend payout by 25%. For 2025, Hannover Re is aiming for a group net income target of 2.4 billion euros, reflected in a stock increase of 0.70% at market close..