Balance sheet season & interest rates: German stock market downhill despite ECB key interest rate decision.

Balance sheet season & interest rates: German stock market downhill despite ECB key interest rate decision.

On Thursday the German stock market recorded a significant decline. The DAX started trading with a small minus and continued to fall as it progressed. Despite a temporary reduction in losses, the leading German index fell by 1.08 percent to 14,731.05 points at the end of the day. The quarterly balance sheets and the interest rate decision of the European Central Bank (ECB) had a significant influence on this trading day. The ECB did not change the current interest rate level and kept the key interest rate in the euro zone at 4.5 percent. Inflation is easing and the economy is weakening (According to a report by www.finanzen.net ).

Balance sheet season & interest rates in focus

The companies' quarterly balance sheets were an important factor on this trading day. Mercedes-Benz warned cautiously about its annual results due to strong competition in the car business. Rheinmetall, on the other hand, once again benefited from its arms and ammunition business. Small caps such as AIXTRON, HelloFresh and Ceconomy also published their balance sheets.

Siemens Energy shares are double-digit losers in the DAX

Siemens Energy shares fell over 34 percent after it was confirmed that the company was negotiating with the federal government over guarantees. Such high price losses are highly unusual for stocks listed in the DAX and only occur on special occasions. The price had already fallen by just over 37 percent in June after the company's profit forecast had to be withdrawn.

The above facts indicate possible impacts on the market, consumers and the industry. The DAX decline can lead to uncertainty and losses for investors. The fact-based analysis shows that companies like Mercedes-Benz are more cautious due to the strong competition in the car business. This could have an impact on the automotive market. Rheinmetall's positive balance in the arms and ammunition business can be attributed to the geopolitical situation and increased international demand. Siemens Energy's problems could indicate structural challenges within the company. This information is based on the article from www.finanzen.net.

Source: www.finanzen.net