DAX Moves Higher As Lower Oil Prices, Bond Yields Offset Weak Economic Data
(RTTNews) - Despite weak factory orders and construction sector data, the German market gained significant ground in positive territory Tuesday morning thanks to a sharp drop in crude oil prices and lower Euro zone bond yields.
Brent crude futures fell to $98.66 a barrel, losing about 1.7% from previous close. The yield on Germany's 10-year government bond dropped to 3.441% before edging up to $3.467%, still down by about 0.04% from previous close.
The benchmark DAX, which climbed to 25,522.09, was up 213.47 points or 0.85% at 25,467.68 about half an hour before noon.
Merck climbed nearly 4%. Qiagen moved up 3.6%, while SAP and Bayer gained 2.7% and 2.5%, respectively.
Adidas, Commerzbank, Henkel, Siemens Healthineers and Continental advanced 1.5%-1.8%. Gea Group, Symrise, Vonovia, Siemens, Hochtief, BASF, Fresenius and Deutsche Bank gained 0.9%-1.4%.
Rheinmetall tumbled more than 3%. Daimler Truck Holding dropped nearly 1%, while Siemens Energy declined marginally.
Data released by Destatis showed Germany's factory orders declined sharply in August largely due to the fall in transport equipment manufacturing.
Factory orders plunged 10.6% from the previous month, in contrast to the 3.2% rise in July. Orders were expected to fall 0.9%.
Excluding large-scale orders, new orders were 0.1% lower than in the previous month. Foreign orders were down 5.4% in August and domestic orders declined 17.3%.
Survey data from S&P Global showed Germany's construction sector contracted notably in September, led by a steep reduction in work on housing projects. The construction Purchasing Managers' Index fell to 43.5 in September from an eight-month high of 48.7 in the previous month.
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