DAX Rallies As Germany Faces Snap Election
2024-10-31
3832
(fxcue news) - German stocks rose sharply on Thursday as investors digested the ramifications of political upheaval in the country.
The German coalition government collapsed today as Chancellor Olaf Scholz sacked his finance minister in a late-night move after a marathon of crisis meetings.
The three remaining ministers of the Free Democrats also resigned later at night, paving the way for a snap election.
Meanwhile, investors shrugged off data that showed Germany's industrial production declined more than expected in September.
Industrial production posted a monthly fall of 2.5 percent, partially offsetting the 2.6 percent increase in August, Destatis reported.
On a yearly basis, industrial production was down 4.6 percent in September after a 3.0 percent drop in the previous month.
The zigzagging of industrial data suggests that German industry has not yet entered a period of full bottoming out, ING economist Carsten Brzeski said.
The benchmark DAX was up 219 points, or 1.2 percent, at 19,257 after losing 1.1 percent in the previous session.
Banks traded higher, with Commerzbank and Deutsche Bank rising over 1 percent each.
SGL Carbon, a manufacturer of carbon-based products, rallied 2 percent despite posting lower profit and revenue for the third quarter.
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