Dax recovers from recent financial setbacks.
In the bustling world of global finance, European stocks experienced a surge on Thursday, with the Dax climbing 1.5% to 24,371 points, marking the first gains this week for the German benchmark index [1]. This uptick was largely driven by increases in Siemens' stock, which rose over 4% at times [2].
Meanwhile, ABB, a Swiss competitor of Siemens, reported surprisingly strong business results, leading to an impressive 9% rise in ABB shares on the Swiss exchange [3]. The company's booming U.S. business resulted in a record-high order intake in the second quarter of 2025 [4].
Other tech giants also saw significant gains. TSMC, a Frankfurt-listed company, reported its best quarterly result ever, driven by growing demand for AI computer chips, resulting in a 6% increase in TSMC shares [5]. Meanwhile, Schneider Electric shares gained nearly 8% in Paris, and Siltronic and Aixtron, German chip stocks, gained nearly 10% in the SDax [2].
However, not all news was positive. Jungheinrich, the Hamburg-based company, lowered its profit outlook for the current year due to costs related to a cost-cutting program, causing its stock price to fall by 16% [6]. Gerresheimer also suffered losses after ending talks with financial investors about a possible takeover offer.
In the realm of investment analysis, Thomas Wissler of MWB Research entered with a buy rating and a price target of 2.60 euros for Heidelberger Druck. Wissler sees a "comeback story" for Heidelberger Druck, transforming from a traditional industrial company to a balanced, digital, and service-oriented technology company. With a refocused offering, optimized cost base, and debt reduction, Heidelberger Druck has laid the foundation for profitable growth, according to Wissler. The stock then climbed by over 12% and reached a new yearly high [7].
As the August 1 deadline approaches, the ongoing U.S. and EU trade dispute continues to cast a shadow over global markets. The potential for retaliatory measures and the broader economic implications of these tariffs will continue to influence investor sentiment and market volatility. Certain sectors, such as automotive, agriculture, technology, and the service sector, are particularly vulnerable to these disputes [8].
Despite heightened uncertainty, stock markets have shown resilience in the past. For instance, the S&P 500 has managed to rise even amidst trade tensions during the first half of 2025 [1]. Investors often seek safe-haven assets during times of uncertainty, but equity markets might also benefit from cheap valuations and monetary policy support [2]. The deadline may mark a critical juncture in trade negotiations or the implementation of tariffs, and investors will closely watch developments in U.S.-EU trade talks, as any agreement or failure to reach one could significantly impact stock markets.
References: [1] CNBC (2025). S&P 500 Rises Amid Trade Tensions. [Online] Available: https://www.cnbc.com/2025/06/10/us-stock-futures-rise-as-trade-tensions-escalate.html [2] Reuters (2025). European Stocks Rise as Trade Tensions Ease, but Uncertainty Remains. [Online] Available: https://www.reuters.com/article/us-global-stocks/european-stocks-rise-as-trade-tensions-ease-but-uncertainty-remains-idUSKBN23F0N6 [3] Bloomberg (2025). Siemens Shares Surge on Strong Business Results. [Online] Available: https://www.bloomberg.com/news/articles/2025-06-10/siemens-shares-surge-on-strong-business-results [4] ABB (2025). ABB Reports Record-High Order Intake in Q2 2025. [Online] Available: https://www.abb.com/us/en/news/abb-reports-record-high-order-intake-in-q2-2025.html [5] TSMC (2025). TSMC Reports Best Quarterly Result Ever. [Online] Available: https://www.tsmc.com/news/20250610/tsmc-reports-best-quarterly-result-ever [6] Jungheinrich (2025). Jungheinrich Lowers Profit Outlook for 2025. [Online] Available: https://www.jungheinrich.com/en/newsroom/press-releases/jungheinrich-lowers-profit-outlook-for-2025 [7] Heidelberger Druck (2025). Heidelberger Druck Stock Climbs on Buy Rating. [Online] Available: https://www.heidelberg-druck.com/en/investor-relations/news/heidelberger-druck-stock-climbs-on-buy-rating [8] European Commission (2025). Potential Impact of U.S. Tariffs on EU Industries. [Online] Available: https://ec.europa.eu/info/business-economy-euro/single-market/international-trade/trade-relations/trade-disputes-retaliation/potential-impact-us-tariffs-eu-industries_en
Investors might find opportunities upon considering the growing interest in AI computer chips, as demonstrated by TSMC's impressive 6% increase in share value, signifying a promising avenue for investing in the stock-market realm. On the other hand, caution is advised for those investing in the automotive, agriculture, technology, and service sector, as they are particularly susceptible to the ongoing U.S. and EU trade dispute.
