German equities accelerated their recovery on Thursday afternoon, building on Wednesday's gains as the Federal Reserve delivered its first interest-rate increase since 2023 and Brent crude prices continued to slide.
The DAX finished 1.0% higher at 25,800 points, extending its advance. The MDAX of mid-cap companies rose 0.9% to 31,554, while the Euro Stoxx 50 added 1.1%.
Oil prices had already dropped sharply on Wednesday after reports emerged that a major pipeline in Saudi Arabia could be partially restarted.
Markets were reassured by the Fed's resolve under new central bank head Kevin Warsh, who signaled a determination to combat persistent inflation. Michael Heise, chief economist at HQ Trust, said the Fed was "defending its credibility" and predicted another rate increase in October or at the latest December.
Johannes Mayr, an economist at asset manager Eyb & Wallwitz, described the decision as one made for the market and against President Donald Trump, who has long demanded lower benchmark rates. The Fed was responding "not only to stubborn inflation but also to growing doubts in the bond market about its resolve," Mayr said.
Auto stocks led the recovery after steep losses the previous day. Volkswagen, Mercedes-Benz and BMW shares rose as much as 3.2%.
Among individual names, Bilfinger fell 20%, hitting its lowest level in roughly a year and a half. The industrial services company cited weaker-than-expected demand amid the protracted Middle East conflict and said it now expects lower revenue and a significantly reduced operating margin compared with prior guidance.
Qiagen shares climbed 3.3% on takeover speculation reported by the Manager Magazin. Private-equity firms TPG and Bain Capital were named as potential bidders, with KKR, EQT and Advent also reportedly interested, though the magazine provided no sourced confirmation.
Wacker Chemie cut its medium-term targets, abandoning a revenue goal of around €10 billion by 2030 and lowering its EBITDA margin outlook to approximately 15% from more than 20%. The chemical company's shares dropped 2.8%.
Continental rose 2.0% after CEO Christian Kötz told the Frankfurter Allgemeine Zeitung that the tiremaker could mobilize several billion euros for acquisitions in the event of consolidation in the tyre industry.
