German DAX Climbs On Tech Strength As Inflation Fuels Rate Hike Odds
(RTTNews) - Germany's equity benchmark DAX recovered from a weak start and was up marginally Thursday afternoon thanks to selective buying support. Despite strong earnings and guidance from Nvidia, the mood remained cautious amid concerns over geopolitical tensions and uncertainty about Fed interest rates.
A Fed rate hike by year-end looks likely following Wednesday's data showing firmer-than-expected U.S. inflation. The U.S. Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2% in July after edging down by 0.1% in June. Economists had expected prices to inch up by 0.1%.
Investors now await Fed Chair Kevin Warsh's speech at Jackson Hole for further clues on the central bank's likely moves in upcoming policy meetings.
The DAX was up 43.09 points or 0.16% at 26,359.00 a little while ago.
Infineon Technologies climbed 4.3%, buoyed by upbeat earnings and guidance from U.S. chip maker Nvidia.
Rheinmetall moved up nearly 3.5% and Siemens Energy gained 3.1%. Adidas, SAP and BMW climbed 1.5%, 1.3% and 1.1%, respectively.
Deutsche Bank, Continental, Heidelberg Materials, Siemens Healthineers, Henkel, Allianz, Commerzbank and Symrise shed 1%-1.7%.
Qiagen, Beiersdorf, Scout24, E.ON, Bayer, Fresenius Medical Care, BASF and Deutsche Post drifted down 0.5%-0.9%.
In economic news, German consumer confidence is set to improve in September driven by income expectations and willingness to save, results of the NIM Consumer Climate powered by GfK showed. The forward-looking consumer sentiment index rose to -26.6 in September from -29.4 in August. The score was seen at -29.6.
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