German equities looked set for a subdued session on Thursday, with the DAX expected to open marginally higher as a recent consolidation phase persisted.
The X-DAX, an off-exchange indicator for the blue-chip index, pointed to a gain of 0.04% at 26,102 points one hour before the open. The Euro Stoxx 50 was also forecast to edge up. The DAX’s recent record high of 26,573 points, set last week, has not been revisited amid a lack of directional impetus.
Rising bond yields and elevated oil prices, driven by geopolitical tensions in Iran, weighed on sentiment. The uptick in energy costs and rate uncertainty posed a headwind for the index, which had previously withstood a sharp drop in Asian tech shares earlier in the week.
Regional tech-heavy bourses in South Korea and Japan showed signs of stabilization, recovering after prolonged declines linked to higher borrowing costs. The rebound followed a decline in long-dated U.S. Treasury yields, which came after the Treasury signaled plans to increase buybacks of longer-dated debt.
Analysts noted the DAX’s resilience in the face of the Asian selloff. "The index defied the regional tech rout," said Frank Sohlleder of ActivTrades. "The question now is whether it can stabilize further or succumb to the dual pressures of rising energy costs and rate uncertainty."
In corporate news, Tonies reported a sharp rise in first-half revenue, driven by demand for its Toniebox 2 audio system. However, profit margins contracted due to product mix effects and new U.S. tariffs.
Beiersdorf shares faced potential pressure from Coty’s results, which showed improvement for the fiscal fourth quarter and full-year 2025/26 but fell short of expectations for the current quarter. Coty’s 2026/27 outlook, described as a "transition year," added to uncertainty, though analysts attributed the move to company-specific factors.
Sartorius surged in pre-market trading after UBS upgraded the lab services and pharma supplier to buy, citing premium growth potential. Analyst Matthew Weston raised his revenue and earnings forecasts through 2031 by an average of 3%, justifying a higher valuation multiple.
