DAX Rises on Strong PMI News

Dax Futures

Positive sentiment prevails in the German stock market, propelling the DAX benchmark, which reflects the performance of the 40 largest companies listed on the Frankfurt Stock Exchange, by over a quarter percent. Markets responded positively to the unexpectedly elevated levels of manufacturing and services PMI readings. Markets processed the more significant-than-anticipated drop in producer prices, primarily influenced by reduced energy costs. Geopolitical tensions, however, constrained the potential for upward movement.

The DAX index has increased by 0.32 percent, rising to 25,098.89 from a previous close of 25,017.98. The day’s trading exhibited a range, peaking at 25,143.28 and bottoming out at 24,994.35. The index reached an unprecedented peak of 25,507.79 on January 13. At present levels, the index has experienced an increase of nearly 12.5 percent over the preceding year. Within the 40-scrip index, merely 12 scrips are currently positioned in the overnight red zone.

  • Airbus recorded an increase of 2.1 percent.
  • Porsche Automobil Holding, Deutsche Bank, Heidelberg Materials, and adidas all experienced gains exceeding 1 percent.
  • Bayer experienced a decline of 2.9 percent, leading the losses in the market.
  • Infineon Technologies and Zalando experienced a decline exceeding 1 percent.

The dollar exhibits resilience in the face of heightened tensions between the U.S. and Iran, propelling the six-currency Dollar Index to 97.95 from 97.93 on Thursday. The EUR/USD pair has decreased by 0.06 percent to 1.1764, having fluctuated between 1.1776 and 1.1744. The EUR/GBP pair is currently positioned 0.14 percent lower at 0.8730. In the context of the yen’s depreciation, the EUR/JPY pair has risen by 0.13 percent, reaching a level of 182.74.

In the context of a reduction in global bond yields, driven by geopolitical tensions and a flight to safety, ten-year German bond yields have experienced a decrease of 0.30 percent overnight, settling at 2.7368 percent. The yield, previously closing at 2.7450 percent, fluctuated between 2.7425 percent and 2.7319 percent during the day’s trading session.