On Thursday, German stocks surged as investors assessed the impact of the country's recent political turmoil. The German coalition government experienced a significant upheaval today when Chancellor Olaf Scholz made the unexpected decision to dismiss his finance minister following intensive crisis discussions that extended into the late night.
Subsequently, the three remaining ministers from the Free Democrats tendered their resignations, leading to the prospect of an imminent snap election.
In the midst of these political shifts, investors appeared largely unperturbed by the latest data indicating a steeper-than-anticipated decline in Germany's industrial production for September. According to Destatis, industrial production experienced a 2.5 percent decrease on a monthly basis, partially negating the 2.6 percent growth observed in August.
On an annual scale, September saw industrial production fall by 4.6 percent, following a 3.0 percent decrease in the preceding month. This fluctuating industrial data implies that the German industry is still not in a phase of complete recovery, according to Carsten Brzeski, economist at ING.
The DAX index showed resilience by climbing 219 points, equivalent to a 1.2 percent increase, reaching a level of 19,257, after suffering a 1.1 percent decline in the prior session.
The banking sector experienced gains, with Commerzbank and Deutsche Bank both advancing over 1 percent each. Despite reporting lower profit and revenue for the third quarter, SGL Carbon, renowned for its carbon-based products, saw a 2 percent increase in its stock price.
