DAX Rises as Oil Prices and Bond Yields Counter Weak Economic Data

Dax Futures Live

Despite weak factory orders and construction sector data, the German market made notable gains in positive territory Tuesday morning, driven by a sharp decline in crude oil prices and reduced Euro zone bond yields. Brent crude futures declined to $98.66 a barrel, representing a decrease of approximately 1.7% from the prior close. The yield on Germany’s 10-year government bond decreased to 3.441% before rising slightly to 3.467%, reflecting a decline of approximately 0.04% from the previous close.

The benchmark DAX, which climbed to 25,522.09, was up 213.47 points or 0.85% at 25,467.68 approximately thirty minutes prior to noon.

  • Merck experienced an increase of nearly 4%. Qiagen experienced an increase of 3.6%, whereas SAP and Bayer saw gains of 2.7% and 2.5%, respectively.
  • Adidas, Commerzbank, Henkel, Siemens Healthineers, and Continental experienced gains ranging from 1.5% to 1.8%.
  • Gea Group, Symrise, Vonovia, Siemens, Hochtief, BASF, Fresenius, and Deutsche Bank experienced increases ranging from 0.9% to 1.4%.
  • Rheinmetall experienced a decline exceeding 3%.
  • Daimler Truck Holding experienced a decline of nearly 1%, whereas Siemens Energy saw a slight decrease.

Data released by Destatis indicated a significant decline in Germany’s factory orders for August, primarily attributed to a decrease in the manufacturing of transport equipment. Factory orders experienced a significant decline of 10.6% compared to the previous month, a stark contrast to the 3.2% increase observed in July. Orders were anticipated to decline by 0.9%. Excluding large-scale orders, new orders decreased by 0.1% compared to the previous month. Foreign orders experienced a decline of 5.4% in August, while domestic orders saw a more significant drop of 17.3%.

Survey data from S&P Global indicated a significant contraction in Germany’s construction sector during September, primarily driven by a sharp decline in housing project activities. The construction Purchasing Managers’ Index declined to 43.5 in September, down from an eight-month high of 48.7 in the preceding month.