German Stock Losers Today Drag DAX Lower as Economic Concerns Persist

German equities faced headwinds on Thursday as bearish sentiment weighed on investor sentiment ahead of the weekend. The DAX index, touching a session low of 25,235.00 after reaching 25,337.02 earlier, finished the morning session at 25,259.02, representing a decline of 55.81 points or 0.22% from the previous close. Today’s losers were predominantly concentrated in the automotive and healthcare sectors.

Automotive Sector Bears the Brunt

The auto industry emerged as the primary drag on stock losers today, with several major manufacturers posting significant losses. Fresenius led the decline with a 2.7% drop, while Mercedes-Benz retreated 2.1%. The broader transportation sector struggled, with BMW slipping 1.4%, Porsche Automobil Holding falling 1.1%, and Volkswagen losing 0.9%. Continental and other auto suppliers also participated in the selloff, declining 0.8% on average.

Supporting Stock Performers Offer Some Relief

Not all segments of the German market capitulated. Energy stocks provided a bright spot, with Siemens Energy surging 2.7%, extending gains from renewable energy optimism. RWE continued its upward trajectory, climbing 1.7% for its second consecutive session of appreciation. Real estate and utilities showed modest strength, with Vonovia gaining 1.5%, E.ON up 1.4%, and Adidas advancing 1.3%. Merck, Siemens, and financial names including Commerzbank and Deutsche Bank also posted minor gains.

Economic Data Provides Mixed Signals

The underlying catalyst for today’s caution stems from Germany’s latest economic indicators. Official data from Destatis revealed that German GDP expanded 0.2% in 2025, a rebound from the previous year’s 0.5% contraction. However, manufacturing output contracted for the third consecutive year, signaling persistent industrial weakness. Construction also remained under pressure, though the services sector demonstrated resilience.

On the inflation front, wholesale price pressures continued to ease. December’s wholesale prices climbed 1.2% year-over-year, moderating from November’s 1.5% gain—the fastest pace since February. Month-over-month, wholesale prices actually declined 0.2%, reversing two consecutive months of gains, suggesting deflationary pressures may be emerging in the supply chain.

The combination of weak manufacturing momentum and moderating price growth appears to have reinforced investor caution, explaining the selective losses witnessed among Germany’s stock losers today and the overall DAX consolidation.