German equities faced declines on Thursday as the Federal Reserve indicated a moderated approach to interest rate reductions in the upcoming year, attributing the shift to inflationary pressures.
The DAX index, a key performance indicator of the German stock market, fell by 156 points, marking a 0.8% decrease to settle at 20,086, following a slight dip in the previous trading session.
Douglas Holding AG, a prominent name in the perfume and cosmetics sector, saw its shares drop by 4% despite posting a return to net profitability in the fourth quarter.
Automobile giants BMW experienced a slight decrease while Mercedes Benz's stock remained largely unchanged. This stability in performance occurred against a backdrop of declining new car sales within the EU for November, contrasting the recovery noted in October. Data from the European Automobile Manufacturers' Association revealed a 1.9% year-over-year decline in new car registrations, totaling 869,816 units for November, which offsets the 1.1% climb seen the previous month.
Meanwhile, Volkswagen's stock inched upward as the company continued discussions with labor representatives concerning potential plant closures and reductions in compensation within Germany.
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