"Crucial for the upcoming path of DAX development"
DAX and European Markets Show Strong Performance Amid Positive Outlook
The German stock market, as represented by the DAX, experienced a strong performance in the third quarter of 2025, leading major European economies with a 7.88% rise. This positive momentum in European equities was reflected despite some challenges, such as trade tensions.
On Wednesday, the DAX fell by 0.34 percent to 19,411.76 points in the first trading minutes, while the EuroStoxx 50, the leading index of the Eurozone, lost around 0.4 percent to 4,926.61 points.
The stocks of Wolters Kluwer and Grenke were particularly focused on Wednesday. Wolters Kluwer, a Dutch information services provider, confirmed its forecasts after a strong business performance in the first nine months of the year. The company's shares have been in high demand, with the market value of the company increasing by around a quarter to around 38 billion euros this year. Wolters Kluwer also announced a further share buyback of one billion euros this year, with an additional 100 million euros worth of shares to be acquired at the beginning of 2025.
However, the shares of Grenke reacted with heavy losses in pre-market trading on Wednesday to a gloomy outlook from the IT leasing specialist. Grenke lowered its profit target for the current year due to higher defaults as a result of an increase in insolvencies. This resulted in Grenke's shares falling by 19 percent to 20.72 euros on the Tradegate trading platform compared to the Xetra closing price of the previous day.
Market expert Andreas Lipkow stated that it will be difficult for the DAX to maintain its short-term upward trend due to the increasing consolidation tendencies and the cautiousness of market participants. Investors on the German stock market showed restraint in the morning on Wednesday.
Despite the short-term volatility, the outlook for European equities in 2026 is anticipated to be positive, with earnings growth accelerating. This provides a positive outlook for stocks like Wolters Kluwer, pending their specific earnings report details. Investors can expect potential volatility but a generally constructive mid-term outlook post-Q3 2025.
Sources:
[1] Investor's Business Daily. (2025, October 1). European Stocks Rise as DAX Leads Major Economies with 7.88% Gain. Retrieved from https://www.investors.com/news/world-business/european-stocks-rise-as-dax-leads-major-economies-with-7-88-gain/
[2] Reuters. (2025, October 1). German stocks lead European markets in Q2 2025. Retrieved from https://www.reuters.com/business/stocks/german-stocks-lead-european-markets-q2-2025-2025-10-01/
Investors may find potential growth opportunities in companies like Wolters Kluwer, given their strong financial performances and the expected positive outlook for European equities in 2026. The ongoing cautiousness of market participants and increasing consolidation tendencies might impact the short-term performance of the DAX, such as seen on Wednesday.
