European Stocks Find Footing: DAX Companies Rally as Industrial Data Strengthens

2025-12-26 03:31:01

Monday painted a brighter picture for equity markets across Europe, with the DAX benchmark—home to the 40 largest companies listed on the Frankfurt Stock Exchange—shaking off Friday’s losses and climbing into positive territory. The index closed up 0.44 percent at 24,317.06, recovering from the previous session’s close of 24,211.37.

Factory Output Signals Recovery

The momentum came as fresh economic data suggested resilience in the region. Industrial production across the eurozone expanded 0.8 percent month-on-month during October, a significant jump from September’s modest 0.2 percent gain and the strongest reading since May 2025. The better-than-expected output figures provided enough confidence to lift sentiment among DAX investors.

Winners and Losers in the DAX Companies Index

Among the 40 stocks tracked, 26 finished in the green while only 14 traded lower. Fresenius led the gains with a surge exceeding 3 percent, benefiting from the risk-on mood. Siemens Energy and SAP both advanced nearly 2 percent, posting steady climbing action throughout the session.

On the flipside, Rheinmetall faced the most pressure, dropping over 2.5 percent. Daimler Truck Holding and Vonovia followed as the session’s other notable underperformers, each sliding more than 1 percent as investors rotated out of cyclical names.

Trading within the index ranged from a high of 24,338.06 to a low of 24,237.56, reflecting cautious positioning ahead of key events.

Currency Markets Adjust to Fed Weakness

Supporting the euro’s outperformance, the U.S. dollar retreated 0.08 percent, pulling the Dollar Index down to 98.32. The EUR/USD pair edged up 0.05 percent to 1.1746 after oscillating between 1.1747 and 1.1727. The EUR/GBP slipped marginally by 0.06 percent to 0.8775, while the EUR/JPY pair weakened 0.46 percent to 182.11.

Bond Market Watches ECB Decision

Ten-year German bond yields eased overnight, declining 0.68 percent to 2.8415 percent from the prior close of 2.8610 percent. The moves reflect market positioning ahead of Thursday’s European Central Bank interest rate decision, where a pause in monetary tightening is widely anticipated. Yields fluctuated within a range of 2.8595 to 2.8388 percent during the session, signaling measured expectations rather than dramatic repricing.

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