Ahead of the eagerly awaited US consumer price data on Tuesday, the German stock market has repeated its gains from the start of the week. The US stock exchanges provided positive information from the previous evening, where investors had accessed technology stocks in particular. Inflation in Germany continues to weaken. At 6.1 percent, the annual inflation rate in May fell to its lowest level since March 2022, confirming the preliminary data from two weeks ago.
Ahead of the eagerly awaited US consumer price data on Tuesday, the German stock market has repeated its gains from the start of the week. The US stock exchanges provided positive information from the previous evening, where investors had accessed technology stocks in particular. Inflation in Germany continues to weaken. At 6.1 percent, the annual inflation rate in May fell to its lowest level since March 2022, confirming the preliminary data from two weeks ago.
The Dax rose in early business by 0.6 percent to 16,195.89 points, the highest level in three weeks. At that time, the leading German index had briefly climbed to a record high of 16,331 points, which is now approaching again. The MDax of medium-sized companies also gained 0.6 percent on Tuesday to 27,463.91 points. The EuroStoxx 50 was up 0.8 percent.
The US inflation data scheduled for 2.30 p.m. are of great importance for the interest rate decision by the US Federal Reserve on Wednesday. Since the inflation rate was particularly high in May 2022, the decline in the annual rate should now be particularly strong for mathematical reasons, said market observer Thomas Altmann from QC Partners. “The inflation rate is the last obstacle on the way to the Fed’s interest rate pause,” said the expert. If inflation falls towards four percent, as expected, then nothing will stand in the way.
In the wake of unexpectedly good quarterly figures from US rival Oracle, SAP shares rose to their highest level since November 2021 and were last listed up 1.1 percent. Flourishing cloud services helped the US software group to increase profits and sales in the past fiscal quarter. The good momentum at Oracle and a big tech hype are good prerequisites for SAP, commented a stockbroker in the morning.
Dürr’s stocks rose by 3.4 percent as the MDax leader. With an acquisition of BBS worth up to EUR 480 million, the mechanical engineering company wants to more than double its sales in automation technology in 2024 to around half a billion euros. The acquisition should be viewed as a positive strategic move by Dürr, a dealer said in the morning. The price seems ok.
The shares of the shop pharmacy have been listed under the name Redcare Pharmacy since Tuesday. The share ticker symbol on the Frankfurt Stock Exchange thus changed from SAE to RDC. The Redcare titles increased in price by 1.0 percent.
Source: Stern
