German DAX Index Continues to Rise, Driven by Healthcare Sector Despite Pressure on Defense and Automotive Stocks

Frankfurt | EcoPulse24

The German DAX index posted a modest gain in the last full trading session before Christmas, rising above 24,320 points and achieving its highest close since November 12. The main driver was the healthcare sector. Bayer shares rose by over 1%, influenced by a global rally in Novo Nordisk following FDA approval of an oral version of its weight-loss drug Wegovy. Merck shares also gained about 0.5%. Other notable gainers included Heidelberg Materials, E.ON, RWE, Deutsche Börse, and Deutsche Bank.

In contrast, defense sector stocks came under selling pressure and were among the weakest performers: Hensoldt (down 1.3%), Rheinmetall (down 1.1%), and Renk (down 0.3%).

Major automotive stocks also retreated after European data showed new car sales remain below pre-pandemic levels, despite signs of gradual improvement. This tempered investor appetite for the sector.

On the macroeconomic front, stronger-than-expected US GDP data led markets to scale back expectations for an early US interest rate cut in 2026, resulting in a more cautious tone in European equities. At the same time, investors continued to monitor global geopolitical developments, which remain a key influence on market direction.

EcoPulse24 Analysis:
The DAX's recent performance reflects the resilience of the German market, supported by defensive non-cyclical sectors such as healthcare and energy, even as certain sectors face targeted pressures amid ongoing global uncertainty regarding monetary policy and geopolitics.