German Equities Close Busy Earnings Day Higher

12:49 PM EDT, 10/27/2026 (MT Newswires) -- German shares ended Tuesday's session with the blue-chip DAX index 0.77% in the green, as investors digested corporate earnings and updates, including a profit warning from Mercedes-Benz Group (MBG.F). Shares of the German automaker fell 3.63%, making it the worst performer on the index, after it lowered its full-year 2026 profit outlook on "increasingly challenging" market conditions in China and expected elevation of fourth-quarter costs. Mercedes-Benz cut its cars division's adjusted return on sales target to between 2% and 3% from the previous 3% to 5% goal, while group EBIT is now projected to remain flat year over year rather than showing "significant" growth. On the flip side, Porsche AG (P911.F) affirmed its full-year 2026 outlook alongside its third-quarter results, including expectations of group sales revenue between 35 billion euros and 36 billion euros despite persistent geopolitical and market uncertainties. "P911 maintained their '26 outlook, which we believe is responsible for the implied Q4 coming in ahead of consensus expectations. We expect the positive reaction in shares to continue given this dynamic," RBC Capital Markets wrote. "Overall, we continue to believe P911 could be the most interesting German OEM play once it gets past the '27 hurdle. The '28 setup is helped by the ICE Macan return, hopefully no more or reduced restructuring costs, and an emphasis in expanding price/mix at the top end." Porsche AG ended the trading day 4.14% higher on Xetra. Speaking of the automotive industry, the ifo Institute reported that German export expectations brightened in October 2026, buoyed by renewed optimism among automakers and momentum across broader industrial manufacturing. The ifo export expectations rose to 12.2 points from 9 in the previous month, reaching its highest level since February 2022. In geopolitical news, Reuters reported that Yemen's Iran-aligned Houthis claimed a ballistic missile attack on Saudi Arabia's major Ras Tanura oil refinery, though Saudi authorities have yet to confirm the strike. Meanwhile, a US-brokered local ceasefire took effect around the Russian-occupied Ukrainian town of Oleshky to deliver urgent humanitarian aid, even as Russian missile strikes continued against Kyiv elsewhere.