German stocks surged on Thursday following significant announcements from China's leadership about renewed initiatives to spur economic growth. The Chinese government pledged increased fiscal support and measures to stabilize the troubled property sector, which buoyed investor sentiment.
Additionally, investors were encouraged by consumer sentiment data co-published by GfK and the Nuremberg Institute for Market Decisions. The data indicated that German consumer confidence is expected to see a modest improvement in October despite the ongoing weak economic forecasts.
The consumer sentiment index, a forward-looking measure, improved to -21.2 for October, up from -21.9 in September. Analysts had predicted a decline to -22.4. NIM consumer expert Rolf Burkl noted that the slight uptick in consumer climate, following a significant drop the previous month, suggests a stabilization at a low level.
The benchmark DAX index rose by 244 points, or 1.3%, reaching 19,162 after experiencing a 0.4% decline in the prior session.
In corporate developments, BASF saw a 2.6% drop after it announced a reduction in its dividend. Conversely, sportswear manufacturer PUMA experienced a 4.3% surge following the appointment of Markus Neubrand, 48, as its new Chief Financial Officer and Board member.
Commerzbank's shares climbed nearly 5%. The bank, which is the takeover target of Italy's UniCredit SpA, reaffirmed its strategy and projected higher net profits and returns on equity by 2027.
Siemens Energy saw a slight increase after extending Chief Executive Christian Bruch's (pictured) contract for an additional five years, now set to last until April 2030.
SMA Solar Technology AG shares soared nearly 6%, with the company announcing a comprehensive restructuring and transformation program aimed at enhancing efficiency and sharpening strategic focus.
Evotec shares jumped 6.6% after the drug development company entered a technology development partnership with Novo Nordisk.
