DAX: DE40 gains 0.6% driven by German auto sector 📈 Thyssenkrupp surges 10% on submarine orders

DAX futures (DE40) are up slightly over 0.5%, paring some of their initial gains. The index is primarily driven by German automotive stocks. Yesterday, U.S. House Speaker Mike Johnson stated that the White House is considering whether the pharmaceutical and automotive sectors could be exempt from mutual tariffs. These reports appear to be fueling a relief rally among German automakers.

European stocks are also gaining partly due to growing optimism over a potential peace agreement between Ukraine and Russia. Following Donald Trump’s conversation yesterday with Putin and Zelensky, he indicated that negotiations would begin without unnecessary delays, with both leaders expressing a strong interest in reaching a peace deal. Meanwhile, U.S. Treasury Secretary Bessent is set to travel to Ukraine.

• Volkswagen, BMW, Porsche AG, and Mercedes stocks are up around 5%, with Siemens AG and Siemens Energy also seeing strong gains.
• Steel producer and key supplier to the German Navy, Thyssenkrupp (TKA.DE), has surged 10%, boosted by a higher-than-expected EBIT in its quarterly results and an upgraded free cash flow forecast, driven by Germany’s record investments in submarines.
• On the downside, drugstore chain Douglas AG and defense sector supplier Hensoldt are facing sharp losses, while Hapag-Lloyd and Beiersdorf are also trading lower.
• Commerzbank is resisting the broader decline in the European financial sector, rising 1.5%, after reporting a net profit of €2.4 billion for 2025, driven by restructuring efforts.
• Delivery Hero shares are gaining after the company announced plans to buy back over $1 billion in debt securities. Meanwhile, flatexDEGIRO shares are up 2%, following Morgan Stanley’s decision to upgrade the stock to “Overweight” with a price target of €21 per share.

European equities are experiencing heightened volatility today. The tobacco sector is among the biggest losers, with British American Tobacco shares plunging over 8% following disappointing financial results. The energy sector is also under pressure, weighed down by falling oil prices, while Unilever shares are down more than 7%. The luxury goods sector is leading the gains, with EssilorLuxottica shares rising over 5%, while the industrial and automotive sectors remain the strongest performers in Europe. Source: xStation5

DE40 (H1 Interval)

DAX futures have reached the upper boundary of their short-term price channel at 22,500 points. While a pullback to 22,300 (EMA50, orange line) remains possible, the base scenario continues to favor an upward trend.

Source: xStation5

Kriegsmarine Order Lifts Thyssenkrupp Shares

The industrial conglomerate Thyssenkrupp (TKA.DE) surged nearly 10% today, driven by higher free cash flow (FCF) forecasts, reflecting €1 billion in new payments related to a major submarine order for the Kriegsmarine.

• The company now estimates free cash flow (FCF) for 2025 to range between €0 and €300 million, a significant improvement from the previous negative forecast of -€200 to -€400 million.
• At the same time, Thyssenkrupp expects revenue growth to range between 0% and -3% year-over-year in 2025, compared to its earlier projection of 3% growth.
• However, adjusted operating profit in 2024 more than doubled year-over-year, reaching €191 million, while the order backlog grew over 50% YoY to €12.5 billion, largely supported by the €4.7 billion submarine contract for the German Navy.

Thyssenkrupp Shares (D1 Interval)

The stock is up over 10% today, trading nearly 15% above its 200-day EMA (red line), signaling a potential bullish reversal in its long-term downtrend.

Source: xStation5