NEW YORK, January 3, 2026, 10:42 ET — Market closed
- Germany’s DAX ended Friday up 0.2%, near record territory, as Europe started 2026 at fresh highs.
- MTU Aero Engines and RWE led DAX gainers, while SAP and re/insurers fell.
- Next week’s Germany and euro zone inflation updates are in focus ahead of a heavier earnings slate later this month.
Germany’s blue-chip DAX index — a basket of the country’s biggest listed firms — ended Friday up 0.2% at 24,539.34 in Frankfurt, before markets shut for the weekend. Reuters
The first session of the new year left investors with an early test of whether Europe’s late-2025 rally can hold once holiday-thin trading gives way to fuller volumes and fresh economic data.
Across Europe, the STOXX 600 hit a record close at 596.14, with technology and defence shares leading gains, while London’s FTSE 100 briefly topped the 10,000 mark, Reuters reported. “Europe has mostly held on to its gains,” said Steve Sosnick, chief market analyst at Interactive Brokers. Reuters
In Frankfurt, MTU Aero Engines climbed 4.48% and RWE rose 3.65%, while BMW gained 3.41%. Munich Re fell 3.88%, Hannover Re slipped 3.53% and SAP dropped 3.07%, according to data compiled by Investing.com. Investing
The upbeat start to 2026 comes with a fragile economic backdrop. Euro zone manufacturing sank deeper into contraction in December, with the HCOB Purchasing Managers’ Index (PMI) — a survey-based gauge where readings below 50 signal shrinking activity — falling to 48.8, and Germany the weakest among the countries surveyed, Reuters reported. Reuters
German exporters also face a tougher external demand picture. The BGA trade association expects a prolonged slump in exports to the United States and China, citing tariffs and structural pressures such as energy costs and bureaucracy, Reuters reported. Reuters
Wall Street’s mixed close on Friday added to the cross-currents for global equities. The S&P 500 and Dow ended higher while the Nasdaq edged lower, and investors focused on the Federal Reserve’s policy outlook as delayed U.S. data releases return after the government shutdown, Reuters reported. Reuters
Before the next session after the weekend, inflation will be the top near-term macro catalyst for Frankfurt traders. The Bundesbank’s schedule shows Germany’s harmonised inflation update (HICP, the EU-comparable measure) is next due on January 6. Bundesbank
Eurostat’s timetable shows the euro zone’s flash inflation estimate for December is scheduled for January 7, a release that often feeds directly into rate-cut expectations for the European Central Bank. European Commission
On the corporate calendar, investors also have dates to circle. SAP is set to publish Q4 and full-year 2025 preliminary results on January 29, while Deutsche Bank’s calendar shows its preliminary 2025 results are also due January 29, and Siemens lists first-quarter fiscal 2026 results on February 12. SAP
Technically, the DAX is back within about 1% of its all-time high near 24,771, according to Deutsche Börse market commentary, keeping record territory within sight. Nearer-term chart watchers have pointed to the area just below 24,500 as a recent hurdle, according to a market note carried by MarketScreener. Deutsche Boerse
