German equities closed higher on Thursday, with the DAX gaining 0.31% to 26,367.24 points, marking its third consecutive daily advance but remaining below the previous session's peak.
The MDax of mid-cap stocks rose 1.31% to 32,947.28, while the Euro Stoxx 50 fell 0.71% to 6,424.73. The FTSE 100 and Swiss Market Index also declined. In contrast, U.S. markets, particularly the tech-focused Nasdaq, advanced as major American technology firms reported strong quarterly results.
Nvidia’s quarterly report and outlook for AI chips fueled investor optimism, with the company’s revenue expected to surge by approximately 70% next year. Analysts highlighted Nvidia’s outsized scale, noting its market capitalization now exceeds the combined value of all 40 DAX constituents. Chipmakers Infineon and Suss Microtec rebounded with gains of 3.6% each after prolonged weakness. Software stocks SAP and Nemetschek led their respective indices, rising 5.5% and nearly 10%, while GFT Technologies surged 15% on reports of a partnership with Deutsche Bank.
Telecom stocks faced mixed performance following upgrades from Kepler Cheuvreux. United Internet and Ionos were upgraded to 'Buy,' with their shares climbing 5-6%, while Deutsche Telekom was downgraded and fell 2.6% after a critical report in Handelsblatt.
Industrials also saw selective gains. Bilfinger advanced 5.4% after UBS upgraded its outlook, citing improved order intake despite prior quarterly disappointments. Asta Energy, which joined the SDAX in June, rose 9.6% following half-year results and an upwardly revised full-year outlook, benefiting from strong demand for copper-based power generation solutions.
Investor caution persisted ahead of Federal Reserve Chair Kevin Warsh’s speech on Friday, with uncertainty surrounding U.S. monetary policy decisions at the Jackson Hole symposium limiting broader market enthusiasm.
