Germany's blue-chip DAX index remained in positive territory on Thursday, closing 0.27% higher, as markets took stock of upbeat consumer sentiment data in the eurozone's largest economy.
German consumer sentiment is expected to improve in September, with the GfK consumer climate indicator rising to -26.6 points from the revised -29.4 points in August, as income expectations rise "significantly" and economic prospects continue to recover.
"Although the economic outlook in late summer is still more than six points below the corresponding level of the previous year, the fourth consecutive increase indicates a slight upward trend," Nuremberg Institute for Market Decisions Head of Consumer Climate Rolf Bürkl said. "Signals from the economy are also generally positive. Gross domestic product (GDP) performed better than expected in the second quarter of this year, growing by 0.3 per cent. Business sentiment has also improved slightly: the Ifo Index rose three times in a row between May and July, and the Purchasing Managers' Index is currently signaling a slight expansion."
Meanwhile, the ifo Institute said German companies are planning fewer layoffs in August 2026 as the country's labor market shows "a slight upward trend." The ifo Employment Barometer increased to 94.8 points from the previous month's 93 points, reaching its highest level since May 2025, as job cuts in the manufacturing sector lost momentum.
In corporate news, Rheinmetall (RHM.F) signed a memorandum of understanding with the German state government of Hesse for its planned construction of a new logistics and technology center at the state's Kassel-Calden Airport, set to be operational at the end of 2027, and expansion of the company's Kassel site. The security and defense group also plans to establish the Hessian Drone Competence Center in Calden. The stock added 3.02% at closing.
Delivery Hero (DHER.F) upgraded its full-year 2026 guidance, including revenue growth of between 17% and 19% on an annual basis at constant currency and like-for-like basis, against the previous forecast of 14% to 16%. In the first half, the German online food delivery company's group revenue grew year over year to 7.75 billion euros from 6.88 billion euros. Delivery Hero's shares were up 0.27%.
On the regulatory front, members of the European Central Bank's governing council discussed in their July meeting whether the interest rates needed to move into "mildly restrictive" territory amid risks surrounding the inflation outlook. "In spite of these concerns, all members were willing to rally behind the decision to keep policy rates unchanged provided that communication stressed the Governing Council's firm commitment to setting monetary policy to ensure that inflation stabilised at the 2% target in the medium term," according to a summary of the meeting.