German stocks on Thursday took a dip due to disappointing earnings reports from Meta Platforms, the company that owns Facebook. This led to a sense of caution permeating the market ahead of upcoming earnings results announcements from prominent growth and tech companies in the United States.
Meanwhile, German consumer confidence is projected to rise once again in May. This indication was drawn from a survey conducted by market research group GfK and the Nuremberg Institute for Market Decisions (NIM).
In May, the consumer sentiment index, which is a predictive measure, is expected to rise to -24.2, from a revised figure of -27.3 in April. The predicted figure for May was a moderate -25.9. Despite reaching a two-year high, the consumer sentiment index still remains at a significantly low level, according to GfK's statement.
In another survey conducted by the ifo Institute, it was revealed that the mood among German exporters dampened in April. This follows a vigorous rebound in the previous month amid slow demand. The ifo Export Expectations dropped to -2.0 points in April from -1.2 points in March.
Meanwhile, the benchmark DAX fell by 94 points, or half a percent, to 17,994. This comes after a 0.3% drop in the previous session.
Shares of Deutsche Bank also fell by roughly 1% even though the bank reported better-than-expected profit growth in the first quarter. This recovery was fueled by a resurgence in their investment banking unit.
On the other hand, online takeaway company, Delivery Hero saw its shares surge by 6.7% after reporting strong Q1 results. It also raised its revenue outlook for fiscal year 2024. Similarly, HelloFresh, a food delivery company, saw a 1% gain in its shares after it confirmed its fiscal Year 2024 outlook.
