DAX climbs after 5G Auction
|The DAX has moved higher on Thursday. Currently, the index is at 12,170, up 0.46% on the day. In economic news, German Final CPI came in at 0.2%, matching the forecast. Eurozone industrial production declined 0.5%, weaker than the estimate of -0.4%.
In Germany, the auction of 5G spectrum ended, boosting some telecom companies listed on the tecDAX. On Thursday, United Internet was up as much as 6.6% and its subsidiary, 1&1 Drillisch, climbed as high as 9.1%. As well, Telephonica Deutschland gained 3.7%.
German and eurozone numbers disappointed on Thursday, but the euro shrugged off the weak numbers. German Final CPI came in at 0.2%, unrevised from the initial reading. Still, this gain was much smaller than the April gain of 1.0%. Eurozone industrial production continues to struggle, posting a third consecutive decline. The ongoing contraction reflects significant weakness in the manufacturing sector, which has been hit hard by global trade tensions, which have lessened demand for German and eurozone exports.
The DAX lost ground on Wednesday, after disappointing news out of China. Consumer inflation rose at an annualized rate of 2.7% in May, matching the forecast. However, producer price inflation slowed to 0.6% in May, down from 0.9% in April. As well, Chinese auto sales plunged 16.4% in May, its worst monthly decline on record. This marked an 11th successive decline and comes after a 14.6% drop in April. The soft numbers are reflective of the slowdown which has gripped the Chinese economy, as the bitter trade war with the U.S. shows no signs of easing.
Aussie drops on stubborn unemployment
Economic Calendar
Thursday (June 13)
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2:00 German Final CPI. Estimate 0.2%
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5:00 Eurozone Industrial Production. Estimate -0.4%
Previous Close: 12,114 Open: 12,092 Low: 12,079 High: 12,200 Close: 12,171
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