20 March | 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: 24.10.2025 Expectation: 1600 pips
GBPUSD is poised to retest 1.34800
17 October 2025 49
Period: 31.10.2025 Expectation: 600 pips
Break below 0.908 could send AUDCAD to autumn lows
17 October 2025 36
Period: 24.10.2025 Expectation: 290 pips
Brent crude to rebound to $62.90
17 October 2025 39
Period: 30.11.2025 Expectation: 2500 pips
Buying NVIDIA shares upon return to $170 support
16 October 2025 71
Period: 23.10.2025 Expectation: 28500 pips
Opening long positions on ETHUSD as buying interest recovers
16 October 2025 68
Period: 20.10.2025 Expectation: 1500 pips
Buying GBPUSD on weaker US dollar and potentially positive UK data
16 October 2025 52
Go to forecasts