DE 40 forecast: the index resumed growth after correction
The DE 40 stock index continues to recover after the correction, with the uptrend remaining intact. The DE 40 forecast for today is positive.
DE 40 forecast: key takeaways
Recent data: Germany’s industrial production fell by 1.9% in January compared to December last year
Market impact: the data creates a negative backdrop for the German equity market
Fundamental analysis
German industrial production data represents a significantly weaker-than-expected result, coming in at −1.9% m/m compared to expectations of −0.2% and the previous reading of +0.2%. For the DE 40 index, this typically implies a short-term deterioration in sentiment, as the indicator is directly linked to business activity, capacity utilisation, and future corporate earnings trends in an industry-oriented economy.
The short-term impact on the DE 40 is likely to be restraining. The index includes large companies that depend on the industrial cycle, external demand, and business investment activity. Weak output data increases the likelihood of downward revisions to profit expectations in cyclical sectors, which is typically reflected in a more cautious valuation of equities.
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