Correction: German Stocks Close Little Changed; Auto Stocks Rally
(Corrects date in the first paragraph)German equities rebounded on Wednesday, with the blue-chip DAX index up 0.09%, as the latest European Union car registration data and Volvo Car's rally fueled automotive stocks.According to the European Automobile Manufacturers' Association, new car registrations in the EU rose 5.1% annually in April to 972,314 units. For the first four months of 2026, car registrations totaled 3,794,280 units, a 4.2% increase compared with the same period last year.The auto sector was also lifted by a surge in Swedish carmaker Volvo Cars after it secured US regulatory approval to import and sell connected cars in the country.As such, German automobile makers Daimler Truck (DTG.F), Mercedes-Benz Group (MBG.F), Volkswagen (VOW.F), BMW (BMW.F) and Porsche Automobil Holding SE (PAH3.F) gained 3.29%, 3.12%, 2.54%, 2.34% and 1.51%, respectively, on Xetra. German automotive parts maker Continental AG (CON.F) also climbed by 4%.On the trade front, EU ambassadors cleared legislation to scrap import duties on a range of US goods, according to a Reuters report citing a source with knowledge of their meeting. The measures are intended to shield European companies from threats of higher US trade penalties set for July 4, though the bill still requires final approval from the European Parliament, with the final decision expected by mid-June.In local economic news, German corporate layoffs "somewhat" slowed in May as the ifo Employment Barometer ticked up to 93.9 points from April's 91.4 points. However, the Ifo Institute noted that "weak" economic development led to businesses remaining "cautious in their personnel planning."On the geopolitical front, Iranian state TV said an unofficial draft of a potential deal between the US and Iran would include the restoration of commercial shipping through the Strait of Hormuz within a month and withdrawal of the US naval blockade, but the plan remains unfinalised. The report helped drive Brent crude down 4.5% to under $95 per barrel.
