Market Information Monday 6 January 2025

Despite economic challenges and political uncertainty, Germany’s DAX Index is projected to lead European peers with over 10% earnings per share growth in 2025, driven by cyclicals and automakers like BMW and Volkswagen. However, risks include high reliance on China, potential U.S. tariffs, and a February election that could reshape Germany’s government. Longer-term economic revival hinges on clear leadership and fiscal expansion to address GDP contraction risks.

The rapid growth of AI is driving a surge in energy demand, with electricity consumption projected to skyrocket from 8 terawatt-hours in 2024 to 652 terawatt-hours by 2030. Nuclear power, seen ]as a clean and efficient energy source, is gaining momentum, with US companies like Cameco and Southern Company poised to benefit from the shift. Cameco leads in uranium production, while Southern Company offers a diversified energy portfolio, positioning both for long-term growth amid increasing support for nuclear energy.

Donald Trump criticized the UK’s windfall tax on oil and gas producers, calling it a “big mistake” and urging North Sea development, aligning with his pro-oil stance. The tax, raised to 78% under PM Keir Starmer, has prompted some US firms to consider exiting the UK market. Trump’s remarks echo broader critiques from figures like Elon Musk, who has attacked Starmer’s policies and leadership in recent days.

The 6M Euribor decreased with 1 basis point to 2.56% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.41% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.