-- German shares ended Thursday in the red, as the market processed weak private sector data alongside war-driven oil price hikes.
At closing, the blue-chip DAX index lost 0.16%.
Business survey data compiled by S&P Global showed that private sector output in Germany contracted for the first time in nearly a year due to the conflict in the Middle East. The Flash Germany Composite PMI output index came in at a 16-month low of 48.3 in April, against the previous 51.9 and the market forecast of 51.1.
Zooming out, the flash composite PMI for the eurozone hit a 17-month low of 48.6 in April, compared with the previous 50.7 and expected 50.2, as private sector output tumbled for the first time in 16 months amid strengthening inflationary pressures.
"The Iran war and the subsequent surge in energy prices are taking their toll on Europe... This dip below the 50-point threshold, which separates growth from contraction, confirms our forecast that Eurozone growth will temporarily stall as a result of the war. Whilst the Bloomberg consensus forecasts GDP growth of 0.2% and 0.3% qoq for Q2 and Q3, we expect growth of just 0.0% and 0.2%," Berenberg said.
In corporate news, TUI (TUI1.F) was down 4.24%, as Deutsche Bank Research trimmed the price target of the German leisure, travel, and tourism company's buy-rated stock to 10.5 euros from 12 euros following its fiscal 2026 outlook revision.
"Key Changes are i) Revenue initial +2-4% growth guidance is suspended, ii) the underlying EBIT Original +7-10% growth vs FY25's EUR1,413m is lowered to a range of EUR1.1-EUR1.4bn, a -6.7-20% cut from initial consensus. Summer bookings are down -7% due to a 'wait and see' approach, with declines in Turkey, Cyprus, and Egypt not fully offset by Western Mediterranean bookings. Positive Development: two cruise ships finally exited the Arabian Gulf and are expected to resume cruises mid-May," the research firm wrote.
Meanwhile, Allianz (ALV.F) unit Allianz Global Investors purchased a 51% stake in battery storage platform Green Energy Storage Initiative, or GESI. The acquisition is intended to bolster the German insurer's presence in large-scale battery storage, supporting the infrastructure required for a stable and resilient energy grid. Allianz gained 0.08% at the end of the session.