DAX Index Flat; German Industrial Output Beats Forecasts

12:00 PM EST, 12/08/2025 (MT Newswires) -- German equities started a new trading week little changed, with the blue-chip DAX index closing 0.07% higher on Monday, amid better-than-expected industrial output. Destatis reported that industrial production in October was up 1.8% on a monthly basis, against a revised 1.1% jump and an expected 0.2% gain. "And while it won't be easy to solve the structural challenges - definitely not quickly - there are at least tentative signs of a bottoming out. Industrial orders have now increased for two months in a row, inventories have come down somewhat, and capacity utilisation has started to turn. Admittedly, all of these signs are still very tentative and weak. However, let's not forget that the German parliament only signed off on the 2026 budget a few weeks ago and that the announced fiscal stimulus will only gradually unfold," ING wrote. Sentix survey results found that overall investor sentiment for the German economy slipped to its lowest since April, to -22.7 points in December from -20.4 points in November. Meanwhile, overall sentiment in the euro area improved to -6.2 points from -7.4 points in the previous month, in line with market forecasts. "The eurozone is therefore finding it difficult to see the global momentum perceived by sentix survey participants for almost all other regions and countries also having an effect in Euroland. Towards the end of 2025, the reason for this lies with Germany, the largest eurozone economy. Recessionary forces continue to have an impact here, which is spreading to the entire eurozone," the report said. In corporate updates, Rheinmetall (RHM.F) rose 3.47% after receiving an order from the Bundeswehr for 120-millimeter tank ammunition and additional cartridges. The German Armed Forces placed the order with the German defense company under an extended 4 billion-euro framework agreement that runs through 2030. TKMS (TKMS.F) was up 4.23% as mwb Research raised its price target for the buy-rated stock following the German naval platform and equipment provider's "solid" preliminary fiscal 2025 results. "With a clean beat, improving mix, structural margin upside and multiple catalysts ahead, we raise our PT to EUR 102.00 (from 100.00)," the research firm wrote.