Danish stocks surge on German debt deal

Danish industrial stocks like Vestas, NKT, and Rockwool saw significant price increases after news emerged of an impending German debt brake deal. The compromise will allow the German government to invest more heavily in sectors like energy, infrastructure, and defense, disregarding the previous borrowing limit. Investors are optimistic, particularly given the Green Party’s involvement in the agreement. According to Jacob Pedersen, Stock Analysis Chief at Sydbank, this is excellent news for economic growth and will particularly benefit companies in targeted industrial sectors along with their suppliers. Following this, Danish stocks rose sharply, with Vestas climbing 5.9%, NKT 4.2%, and Rockwool 3.6%. The German DAX index also rose by 1.9%. The debt brake, which caps the structural budget deficit at 0.35% of GDP, was originally implemented in 2009 under Chancellor Angela Merkel.