German DAX Index Ends in Green; Rheinmetall Soars

11:58 AM EST, 12/09/2025 (MT Newswires) -- Germany's blue-chip DAX index remained in the green, closing Tuesday 0.49% higher, amid a rally led by pharma stocks and defense group Rheinmetall (RHM.F). The German arms maker was the index's second-top gainer, rising by 3.91%, after Bloomberg News reported that the German parliament is expected to approve a record 52 billion euros worth of military procurement deals in the coming week, as part of efforts to turn the Bundeswehr into Europe's strongest conventional army. On the other hand, Daimler Truck (DTG.F) was one of the worst-performing blue-chip stocks, losing 1.39%, as Deutsche Bank Research lowered the German truck maker's price target to 41 euros from 43 euros, with a buy rating, in a 2026 global truck outlook report. "The US market's significant contraction this year has once again tested truck manufacturers' resilience. Given the divergent market forecasts for the forthcoming year, we anticipate the US will continue to be a critical competitive battleground. Our outlook predicts a subdued Q1, followed by a potential uptick from Q2 as inventory levels normalize and stricter emissions regulations possibly encourage a minor pre-buy effect in H2 2026. In Europe, the market is projected to reach replacement levels in 2025 and likely exceed them next year, largely driven by Germany. We believe a recovery in the German market alone could stimulate broader growth across the entire EU," the research firm wrote. On the economic front, Destatis reported that Germany's calendar and seasonally adjusted trade surplus was 16.9 billion euros in October, above the 15.3 billion euros in September and the expected 15.9 billion euros. Exports ticked up 0.1% on a monthly basis, against the revised 1.5% gain earlier and the expected 0.2% drop. Monthly imports declined 1.2%, compared with the revised 3.1% jump previously and the consensus forecast of a 0.2% growth. "More generally speaking, German trade remains in the midst of structural geopolitical changes. Half a year after US President Trump's 'Liberation Day', German exports have still not fully recovered. Given the ongoing structural challenges, it currently requires a lot of imagination to see a quick return of the export sector as a powerful growth engine for the German economy," ING said.