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: 31.03.2026 Expectation: 2100 pips
Investing in USDCAD with 1.38800 in sight
27 February 2026 46
Gold buy
Period: 06.03.2026 Expectation: 1200 pips
Accumulate gold up to $5,200 per ounce
27 February 2026 72
Brent sell
Period: 31.03.2026 Expectation: 150 pips
Selling Brent crude from $72.0
27 February 2026 54
Period: 31.08.2026 Expectation: 8000 pips
Buying USDJPY on stubborn US inflation
27 February 2026 38
Period: 31.08.2026 Expectation: 700 pips
Building medium-term buy position in NVIDIA
27 February 2026 25
Period: 09.03.2026 Expectation: 13000 pips
Investing in BTCUSD with $81,500 in view
26 February 2026 59
Go to forecasts