Germany's stock market extended its advance on Thursday following the US Federal Reserve's expected rate hike, the first since 2023, while falling oil prices provided additional support.
The DAX rose 0.7% to 25,705 points, building on Wednesday's gains. The MDax, which tracks mid-cap companies, added 0.1% to 31,315, and the Eurozone benchmark EuroStoxx 50 advanced 0.7%.
Oil prices had already tumbled on Wednesday after indications that a key pipeline in Saudi Arabia could partially resume operations, pressuring energy costs and lending buoyancy to risk assets.
Markets appeared steadied by the resolve of Fed Chair Kevin Warsh to combat inflation. "The Fed is defending its credibility," said Michael Heise, chief economist at HQ Trust, who expects another rate increase in October or, at the latest, December.
Volkswirt Johannes Mayr of asset manager Eyb & Wallwitz characterized the move as a response not only to persistent inflation but also to growing doubts within bond markets about the central bank's commitment. He described it as a decision made for the market and against President Donald Trump, who has long pressured the Fed for lower rates and recently threatened trade stoppages should monetary policy not ease.
Auto stocks were among the top performers, recovering from sharp losses the previous day. Shares of Volkswagen, Mercedes-Benz and BMW rose as much as 1.9%, leading gains in the DAX.
The standout decliner was Bilfinger, whose shares plummeted 22% to their lowest level in roughly a year and a half. The industrial services firm cited prolonged weakness in demand linked to the ongoing conflict in the Middle East. With second-half results trailing expectations so far, Bilfinger now forecasts lower revenue and a significantly reduced operating margin — described by one trader as a bitter profit warning.
Wacker Chemie also moved lower, dropping 2.0%, after abandoning ambitious long-term targets. The speciality chemicals group no longer anticipates reaching revenue of around €10 billion by 2030 and scaled back its operational EBITDA margin target from above 20% to approximately 15%.
RWE rose 0.9% after the utility increased its stake in transmission system operator Amprion as expected, bringing its calculated holding to 58%.
