The German leading index is increasing – despite weak industrial data. Impulses are coming from overseas.
Despite weak industrial data, investors on the German stock market have bought again at the end of a fairly strong week. Industrial production in Germany fell by 2.5 percent in May, while analysts on average had expected a slight increase. It is the most significant setback since the end of 2022. The production figures were disappointing across the board, commented economist Thomas Gitzel of VP Bank.
Nevertheless, the Dax rose to its highest level since mid-June in early trading on Friday, closing 0.32 percent higher at 18,510.14 points. This indicates a weekly gain of around 1.5 percent for the leading index and the third week of stabilization in a row. It has largely recovered from the price correction from mid-June, up to around 100 points, and is slowly even starting to reach the May record of 18,892 points again.
The MDax gained 0.41 percent to 25,644.40 points on Friday morning. The Eurozone’s leading index, the EuroStoxx, rose by around 0.3 percent.
There is no impetus from Wall Street, as there was no trading on July 4th due to Independence Day. The highlight of the week, however, is the US labor market report on Friday afternoon. Following the interest rate turnaround initiated in Europe, it will likely be watched for signals as to whether the US Federal Reserve will soon follow suit.
Source: Stern
