20 March 2025 | DAX

German stocks sagged as market participants assess economic prospects

German stocks sagged as market participants assess economic prospects

In the middle of this week, European stock markets were showing mixed dynamics while investors were assessing reforms in Germany and waiting for central banks' decisions on monetary policy.

The pan-European Stoxx 600 closed with a slight increase amid multidirectional movement of sectors and major exchanges. Meanwhile, Germany's DAX index broke a three-day winning streak and fell 0.4%. The decline was primarily influenced by a drop in stocks of defense companies, including Rheinmetall and Hensoldt, which had previously performed strongly this month.

This came after German lawmakers decided on Tuesday to reform the so-called ‘debt brake’ rule and increase defense spending.

In addition, market participants are awaiting the Bank of England's interest rate decision, with its meeting finishing today. Analysts quoted by CNBC expect the British regulator to take after the US Federal Reserve and leave the borrowing costs at the same level amid uncertainty about the prospects of the global economy.

Elena Dorokhina MarketCheese
Period: 24.07.2026 Expectation: 650 pips
Brent crude still has upside potential after consolidation
Today at 11:28 AM 9
Period: 17.08.2026 Expectation: 650 pips
Selling AUDCAD down to 0.97500
Today at 10:07 AM 15
Period: 24.07.2026 Expectation: 950 pips
USDCAD is bottoming out after recent pullback from July highs
Today at 07:21 AM 21
Period: 01.08.2026 Expectation: 2400 pips
GBPUSD sell-off targets 1.31500
Today at 06:18 AM 19
Gold sell
Period: 31.07.2026 Expectation: 250 pips
Selling gold down to $4,000
Today at 06:13 AM 21
Period: 23.07.2026 Expectation: 1090 pips
USDJPY sell-off targets 161.030 amid lower market volatility and higher inflation expectations in Japan
Yesterday at 11:09 AM 18
Go to forecasts