EU Economics

Is Germany heading for stock market disaster? German carmakers at risk of export meltdown

GERMANY’S biggest carmakers are at risk of an export-related meltdown that could trigger a huge stock sell-off in the Eurozone’s largest economy, an expert has warned.

germany angela merkelGETTY            Germany’s car makers could see exports hit by the stronger euro, experts have warned

Volkswagen, BMW and Daimler revenues could suffer a revenue hit from lower overseas sales, after the euro strengthened against the dollar in recent months, investors have feared.The eurozone currency is up around 10 per cent against its American counterpart since March.

And this is thought to be part of the reason why Germany’s top stock index the DAX has stumbled over the past couple of weeks and hit three-month lows.

The stock sell-off could deepen if companies dependent on exports start to report a hit to profits.

“We believe that German carmakers could be at risk from the rising euro and the export-heavy automobile sector makes up nearly 12 per cent of the entire Dax index.

“If the euro persists in strengthening then a deeper sell off in the overall Dax index could also be on the cards.”

It comes as Swedish telecoms company Ericsson witnessed a share price fall of 11 per cent on Tuesday after reporting weak earnings, and forecasting weaker revenue trends in the coming quarters.

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Rubbish, the Euro is much much weaker than 2014, the Germans were doing fine then.


I for one will not now buy anything knowingly from tbe EU countries, I have nothing against individual countries, but until we leave I will buy no more EU products, Especially from Germany and France.

Margeret Robinson
Margeret Robinson

If the euro in going up the southern countries like greece and itlay will also be hit even harder. Yep the eu bumbles along on the edge until events change things and then they hit another crisis. I wonder if thats why Draghi extended his 80 billion pcm QE from reducing in july to remaning at 80 billion till december. To date the ecb money printing machine hss reached almost 3000 billion the circle of debt just goes round and round

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