EBC Markets Briefing | German stocks sluggish; Broadcom drew attention

Germany's benchmark stock index steadied in previous trading session. Trump on Sunday said the US will blockade the Strait of Hormuz after talks held in Pakistan to end the Iran war hit the skids.

German industrial production fell unexpectedly in February, signalling the ‌disappointing first quarter for Europe's biggest economy, despite exports rising by more than expected on stronger demand.

Moreover, recent trends in new factory orders offer little hope of immediate recovery in the manufacturing activities, according to Commerzbank. Local carmakers faced another year of challenges.

Mercedes-Benz and BMW Group reported a sales slump in Q1, as the tough Chinese market continued to weigh. Meanwhile, the aerospace and defence industry maintains its strong momentum.

Banks are experiencing a slow start to 2026, with earnings pressured by a stagnant domestic economy, sluggish loan demand, and challenging interest rate environments.

German stocks were boosted by a massive fiscal stimulus last year, but optimism is easing as the war in Iran has heightened fears of prolonged energy shock – a repeat of 2022 when Russia invaded Ukraine.

The DAX 40 has lately formed a death cross, followed by a significant pullback. Given no major breakthrough in war talks, we expect the index to fall further towards 23,200.

Asset recap

As of market close on 10 April, among EBC major products, Broadcom shares led gains as partnership with Google and Anthropic helps expand the AI compute capacity.

Though chipmakers headed north, software stocks extended their losses. ServiceNow took a heavy blow after UBS downgraded its rating, a drag on ISE Cloud Computing Index Fund.

Oil prices tumbled below $100 amid persistent tensions around the Strait of Hormuz, with the vital shipping lane still largely closed despite a ceasefire deal between the US and Iran.

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