Germany's blue-chip DAX index recovered from the previous day's losses, closing Friday's trading session 0.56% higher, as investors assessed the latest private sector data in key global markets.
Business survey data compiled by S&P Global showed that the Flash Germany Composite PMI Output Index stood at a two-month low of 51 in August, below the July figure and consensus estimate of 51.3, but remained in expansion territory. The manufacturing PMI hit a 51-month high of 54.1, against the prior 52.2 and the expected 52.1, while the services PMI slumped to its lowest in three months to 48.5 from the previous 49.8, against the market forecast of 50.1.
"The recovery in the manufacturing sector has regained momentum, after it showed signs of stalling in the second quarter. Output, new orders and export sales have all risen at their quickest rates since early-2022, which likely reflects some catch-up from the more subdued picture we saw a few months back at the peak of the uncertainty and spike in oil prices associated with the Middle East war, as well as the influence of increased defence spending filtering through," said Phil Smith, economics associate director at S&P Global Market Intelligence. "It still remains to be seen if this pace of growth can be sustained, not least in light of ongoing supply risks, but a notable strengthening of manufacturers' sentiment towards future output suggests that the upturn has legs."
Meanwhile, the seasonally adjusted S&P Global Flash Eurozone Composite PMI Output Index rose to a nine-month high of 52.1 in August from the previous month's 52, as business activity in Germany "modestly" increased while that in France further decreased.
On the corporate side, Brockhaus Technologies (BKHT.F) saw its shares rise 2.42% at closing after a majority of shareholders approved the planned share buyback of up to 90 million euros at its recent annual general meeting. The German technology group plans to launch the buyback offer in 2026, with the shares to be repurchased at 24 euros each. Shareholders also approved the proposed resolution regarding balance-sheet optimization.
Deutsche Bank Research lowered its price target for HelloFresh (HFG.F) to 3.50 euros from 5 euros while maintaining the stock's hold rating, following the German meal kit company's second-quarter financial results. The stock was down 1.22% at the end of the trading day.
"HelloFresh's Q2 was broadly in line, and despite the continued declines in revenue (down ~8% yoy in constant currency), the substantial step-up in absolute EBITDA was a relief. However, we believe H2 is going to be pivotal to convince the market that HelloFresh has found the right formula to reduce the revenue declines (through more successful new customer acquisitions) and eventually return to growth," according to the research firm. "While the improving transparency on revenue cohorts and their behaviour is welcome, the question now is whether the product investments have been enough to get the new customers back into growth territory. The back-to-school (B2S) marketing campaigns planned in H2 would be the first test on this topic."
Elsewhere and in geopolitical news, Iran warned that it would carry out a "devastating" response to "the enemy's new threats" after the US vowed to tighten its economic sanctions against the Middle Eastern country.