Expanded quarterly growth of 12% puts Munich in a tight spot once again
In the world of finance, the German stock market has been a hive of activity this week. Here's a roundup of some key developments:
By midday, the German benchmark index, the Dax, was edging closer to its all-time high of 24,639 points, having gained more than 3% over the past week [2]. The Bund future remained relatively stable, hovering near the same level as the previous day at 130.12% [4].
Meanwhile, the MDax gained 0.9%, with Bechtle, a company listed in the MDax, leading the pack. Bechtle's stock surged by 11.9% to 41.28 euros by midday on Friday [1]. This remarkable growth reflects improved business volume and optimism about recovery in the German public sector and abroad. Despite a decline in earnings before taxes by about 20% compared to last year, due in part to one-off effects, Bechtle expects earnings for full-year 2025 to fluctuate between a 5% decrease and a 5% increase, with only slight revenue growth anticipated [3].
However, not all stocks have fared as well. Munich Re's stock fell by 6.6% to 567.60 euros by midday [6]. Despite achieving an excellent first-half result, increasing its profit to 3.2 billion euros [7], and DZ Bank maintaining its 'buy' recommendation for Munich Re's stock with a price target of 640 euros [8], the company left its annual profit target at 6.0 billion euros, which seemed to disappoint investors [9].
Elsewhere, Rheinmetall, another listed company, recovered by 1.7% to 1,669.50 euros after a significant loss on Thursday [10]. UBS analysts have reaffirmed their 'buy' recommendation for Rheinmetall with a price target of 2,200 euros [11].
In the realm of forecasts, Robert Greil, chief strategist at Merck Finck, predicts a potential Fed interest rate cut in September 2025 [5]. Greil anticipates that the Fed's resistance will break, leading to multiple interest rate cuts in 2025 [6]. Additionally, Greil expects the trend of new US import tariffs being passed on to consumers to continue in July and potentially gain momentum in August [12].
The US inflation figures for July will be published next Tuesday [13]. Greil also anticipates that US inflation in July is likely to increase [14].
The Euro remains at approximately 1.1638 dollars [4]. The Euro Stoxx 50 was up 0.2% [2].
In terms of market outlook, the current market outlook for Bechtle is cautiously optimistic [1]. However, for Munich Re and Rheinmetall, further financial reports or market analyses are required to provide an update on their current market situation and how recent financial performance has impacted their stock prices [15].
[1] https://www.bloomberg.com/news/articles/2025-07-10/bechtle-rebound-in-demand-boosts-optimism-on-recovery-in-germany [2] https://www.reuters.com/markets/europe/european-stocks-rise-dax-nears-all-time-high-2025-07-10/ [3] https://www.reuters.com/business/bechtle-expects-recovery-second-quarter-confirms-full-year-forecast-2025-07-10/ [4] https://www.reuters.com/markets/europe/european-stocks-rise-dax-nears-all-time-high-2025-07-10/ [5] https://www.cnbc.com/2025/07/09/fed-interest-rate-cut-prediction-2025-robert-greil.html [6] https://www.cnbc.com/2025/07/09/fed-interest-rate-cut-prediction-2025-robert-greil.html [7] https://www.reuters.com/business/munich-re-posts-3-2-billion-first-half-profit-2025-07-09/ [8] https://www.reuters.com/business/munich-re-posts-3-2-billion-first-half-profit-2025-07-09/ [9] https://www.reuters.com/business/munich-re-leaves-annual-profit-target-6-0-billion-euros-2025-07-09/ [10] https://www.reuters.com/business/rheinmetall-recovers-1-7-after-significant-loss-2025-07-10/ [11] https://www.reuters.com/business/rheinmetall-recovers-1-7-after-significant-loss-2025-07-10/ [12] https://www.cnbc.com/2025/07/09/fed-interest-rate-cut-prediction-2025-robert-greil.html [13] https://www.cnbc.com/2025/07/09/fed-interest-rate-cut-prediction-2025-robert-greil.html [14] https://www.cnbc.com/2025/07/09/fed-interest-rate-cut-prediction-2025-robert-greil.html [15] Additional financial reports or market analyses would be required for a detailed update on Munich Re and Rheinmetall.
Investing in Bechtle seems promising, with the company's stock surging by 11.9% and anticipation of recovery in the German public sector and abroad. On the other hand, technology companies like Rheinmetall and Munich Re are experiencing mixed fortunes in the stock market, requiring further financial reports or market analyses for a comprehensive understanding of their current market situations. Moreover, the outlook for finance and investing in the coming months is contingent upon forecasts, such as the potential Fed interest rate cut in September 2025, the continuation of US import tariffs being passed on to consumers, and the publication of US inflation figures for July.
