Auto Stocks Drive German DAX Index Higher Amid Planned US Fuel Rule Changes

12:19 PM EST, 12/04/2025 (MT Newswires) -- German equities were back in the green on Thursday, with the blue-chip DAX index closing 0.79% higher, as carmaker stocks rallied after US President Donald Trump proposed a rollback of the previous administration's fuel economy regulations. The Trump plan seeks to repeal the standards finalized by former US President Joe Biden to boost the sales of gas-powered cars. As a result, German automotive companies were the top gainers, with Porsche SE (PAH3.F), Mercedes-Benz Group (MBG.F), and Daimler Truck (DTG.F) finishing the trading session in the green at 6.13%, 4.63%, and 5.81%, respectively. BMW (BMW.F) was also up 4.10%, while Volkswagen (VOW.F) rose 2.82%. In other corporate updates, Deutsche Bank Research downgraded Siemens Healthineers (SHL.F) to hold from buy and lowered its price target to 46 euros from 57 euros, citing the expected overhang from Siemens AG's (SIE.F) planned stake reduction in the medical equipment company. Siemens Healthineers was 1.20% higher, while the German technology conglomerate gained 0.63%. "Siemens AG's communicated structure will likely not only require a considerable amount of time to execute (as there are no definitive timelines yet) but also lead to flowback risk following the targeted spin of a 30% stake," the research firm wrote. On the economic data front, Germany's construction downturn eased in November, as a rise in civil engineering activity counteracted ongoing declines in housing and commercial construction. According to Hamburg Commercial Bank and S&P Global, the HCOB Germany Construction PMI Total Activity Index rose to 45.2 in November from 42.8 in October. "The recession in the construction sector eased somewhat in November. This is almost exclusively thanks to civil engineering, where the index made a sharp jump from contraction to expansion. Public infrastructure projects, like the renewal of rail lines, are playing an important role here. Residential and commercial construction, on the other hand, remain stuck in the economic trough, especially housing, which is particularly deep," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said. Meanwhile, German business sentiment was essentially at a "standstill" throughout 2025. The ifo Institute reported that the overall index rose by just 2.8 points between January and November amid growing corporate concern over the economy. "We are seeing a stabilization of the business climate driven only by expectations, and the euphoria from the start of the year has already faded again," said Klaus Wohlrabe, head of ifo surveys.