DAX Index Closes Higher; German Consumer Sentiment Worsens

11:51 AM EST, 12/19/2025 (MT Newswires) -- Local shares ended the trading week higher, shrugging off data showing a worsening consumer sentiment outlook in Germany. At Friday's closing, the blue-chip DAX index was 0.40% higher. The downward trend in consumer sentiment is anticipated to continue in the coming year, with the GfK Consumer Climate indicator dropping to -26.9 points in January 2026 from a revised -23.4 points in December 2025. The reading, which missed the consensus forecast of -23 points, was attributed to a sharp decline in consumers' income expectations and willingness to buy, along with a marked increase in the propensity to save. "It is noteworthy this month that the propensity to save has climbed to its highest level since the financial and economic crisis: In June 2008, a higher value of 21.4 points was last measured. Renewed uncertainty due to rising inflation fears and controversial discussions about the future of pension insurance have certainly contributed to this 17-year high in the savings indicator," Nuremberg Institute for Market Decisions Head of Consumer Climate Rolf Bürkl said. In more economic data news, Destatis reported that producer prices ticked down 2.3% year over year in November, against a 1.8% decrease earlier and the market forecast of a 2.2% drop. On a monthly basis, producer prices were stable, compared with an expected 0.1% gain. The German Federal Statistical Office attributed the year-on-year decline to lower energy costs and less expensive intermediate goods. On the other hand, consumer and capital goods were pricier compared with the previous year. On the corporate front, the Italian Competition Authority closed its investigation into four carmakers, including Volkswagen's (VOW3.F, VOW.F) Volkswagen Group Italia, regarding the "adequacy and transparency" of the advertised information related to electric vehicle range, battery data and warranty limits. Under a binding regulatory agreement, Volkswagen, Stellantis, Tesla and BYD have 120 days to settle the probe through the launch of website improvements and the introduction of EV range simulators. German manufacturer Volkswagen was off 0.48%.