FRANKFURT (dpa-AFX) - Despite weak industrial data, investors on the German stock market have once again taken hold at the end of a fairly strong week. Industrial production in Germany fell by 2.5 percent in May, while analysts had expected a slight increase on average. It is the most significant setback since the end of 2022. The production figures were disappointing across the board, commented economist Thomas Gitzel from VP Bank.

On Friday, the DAX rose to its highest level since mid-June and was last up 0.72% at 18,584.04 points. This indicates a weekly gain of almost two per cent for the leading index and the third consecutive week of stabilization. It has largely made up for the price correction in mid-June and can even slowly look back towards the May record of 18,892 points.

The MDax continued its recovery on Friday morning and recently gained 1.13% to 25,826.85 points. The index of medium-sized German stocks thus reduced its annual loss to less than 5 percent. The EuroStoxx, the leading eurozone index, rose by around 0.6 percent.

There was no impetus from Wall Street, as there was no trading on July 4 due to Independence Day. Instead, the highlight of the week will be the US labor market report on Friday afternoon. Following the interest rate turnaround in Europe, it is likely to be scrutinized for signals as to whether the US Federal Reserve will soon be able to follow suit.

Meanwhile, the leaders of the traffic light coalition have achieved a breakthrough on the 2025 federal budget and the growth package. The package could lead to additional growth of more than half a percent next year, which would mean an additional 26 billion euros in economic output, the German Press Agency learned from coalition circles on Friday. Accelerated depreciation of investments, improved research allowances and employment incentives are planned. The agreement also provides for compliance with the debt brake.

Following the introduction of provisional additional tariffs on electric cars from China, the EU and China are now facing intensive negotiations. The parties now have four months to reach a decision as to whether high special levies will be imposed once and for all. According to an investigation by the EU Commission, the entire value chain for electric cars in China is heavily subsidized, which threatens to damage the European automotive industry.

Among the individual stocks, investors are focusing on the shares of Porsche AG and Varta. The sports car manufacturer wants to buy the business for electric car batteries from the ailing battery manufacturer. According to Varta, both companies are currently negotiating a possible majority investment in the Varta subsidiary V4Drive. The companies have already signed a non-binding letter of intent. Varta shares soared by up to 32 percent and recently traded 20 percent higher. Porsche AG shares rose by 1.4 percent.

Aixtron shares continued their recent recovery and jumped by almost 16 percent. However, with a price loss of more than 40 percent in the current year, they are still among the weakest stocks in the MDax. Following a weak quarter, the semiconductor industry supplier lowered its sales and margin targets for the current year. However, the order situation, which has stabilized compared to the previous year after a weak start to the year, gives hope. Barclays analyst Simon Coles emphasized that Aixtron's strong order intake largely relates to the coming year, but should strengthen confidence in a growth spurt./edh/mis