DAX Up Firmly As Oil Prices, Bond Yields Drop
(RTTNews) - Despite data showing a more than expected acceleration in Eurozone inflation in the month of September, German stocks climbed notably higher on Friday as bond yields dropped, and oil prices declined sharply.
Oil prices fell reacting to reports that European Union countries are discussing a French proposal to release fuel and crude stockpiles to ease acute market tightness and help avert a potential U.S. diesel export ban.
Brent crude front-month futures fell to $98.92 before recovering to $99.44, still down by about 2.8% from previous close. The yield on Germany's 10-year Government Bond dropped to 3.443%.
Meanwhile, investors continue to follow news from the geopolitical front amid fading hopes of a truce between Iran and the U.S. According to reports, Washington is sending a third aircraft carrier to the Middle East with an additional 10,000 American troops.
The benchmark DAX, which surged to 25,237.92, was up 178.40 points or 0.72% at 25,118.05 a few minutes past noon.
Infineon Technologies surged 5.4%. Hochtief climbed nearly 3% and Siemens Energy moved up 2.3%. Rheinmetall advanced nearly 2%.
Scout24 moved up 1.5%. Deutsche Boerse, Deutsche Telekom, Brenntag, Hannover RE, Siemens, Adidas, Continental and Munich RE gained 0.7%-1.2%.
Commerzbank shed about 1.3% following a rating downgrade by RBC. Qiagen, Daimler Truck Holding, Bayer, Deutsche Bank, Fresenius and BMW shed 0.6%-1.1%.
Flash estimate from Eurostat showed Eurozone inflation accelerated more than expected in September on energy and food prices, rising 3.8% in the month from 3.2% in August. The rate was forecast to climb to 3.7%.
Excluding energy, food, alcohol and tobacco, core inflation rose marginally to 2.5% from 2.4% in the previous month.
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