DAX Up 0.4% Despite Weak Economic Data; BMW Tanks On Profit Warning

RTTNews | 344 days ago

(RTTNews) - The German market is up in positive territory on Wednesday, and the benchmark DAX rose to its highest level in about three months, with industrials stocks climbing up as investors react to the European Union's new trade measures, and the European Commission's plans to reduce the amount of steel imported into the bloc.

Weak German economic data and uncertainty about the political situation in France limit market's upside.

The benchmark DAX was up 100.25 points or 0.41% at 24,489.15 a little while ago. The index hit a high of 25,514.15 earlier in the session.

Siemens Energy, Rheinmetall, Adidas and Zalando are gaining 1.8 to 2.7%. Symrise, SAP, MTU Aero Engines, Deutsche Bank, Fresenius and RWE are also up with strong gains.

BMW is down more than 9% after the German luxury carmaker cut its profit forecast, citing U.S. tariffs and weaker-than-expected growth in the Chinese market.

Mercedes-Benz, Daimler Truck Holding and Volkswagen are down 3.6%, 2.6% and 2.2%, respectively. Porsche Automobil Holding is down 1.7%.

Infineon Technologies, Brenntag, Bayer, Merck and BASF are also notably lower.

Data from Destatis showed Germany's industrial output fell 4.3% year-on-year in August, in contrast to the 1.3% increase in July. Output was expected to fall 1%.

The production of capital goods fell 9.6% and that of consumer goods slid 4.7%. However, intermediate goods output registered a moderate decrease of 0.2%.

Data showed that energy production was down 0.5%, while construction output grew 0.6% in August.

Excluding energy and construction, industrial production fell 5.6% from July and decreased 5.1% from the previous year.

On a yearly basis, industrial production logged a decline of 3.9%, reversing July's 1.5% increase.

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