German stock market index, the DAX, experienced gains on Thursday, closing at 34,378 points, a 0.8 percent increase compared to the previous day’s close. The index steadily built upon an initially positive opening throughout the trading session.
Investor attention was particularly focused on the latest US inflation data. Producer prices rose by 0.9 percent last month, exceeding expectations and showed a 3.3 percent increase year-on-year. Market analyst Andreas Lipkow stated this development is likely to temper expectations regarding potential interest rate cuts, limiting the US Federal Reserve’s flexibility in the near term.
Lipkow further noted the importance of monitoring the impact of recently imposed tariffs and broader economic conditions, while acknowledging the continued strength of the US labor market, with initial unemployment claims remaining within anticipated ranges. He cautioned that premature actions by the Federal Reserve could prove counterproductive.
Among companies traded on the Frankfurt Stock Exchange, Rheinmetall, Airbus and Allianz led the gainers shortly before market close. RWE shares, conversely, finished at the bottom of the index.
Commodity markets also saw movement. The price of gas decreased by one percent, settling at 32 euros per megawatt-hour for September delivery. This price suggests a consumer cost of approximately eight to ten cents per kilowatt-hour, including associated taxes and fees, should the current level persist.
Conversely, oil prices rose significantly, with Brent crude reaching 66.54 US dollars per barrel, a 1.4 percent increase.
The Euro also experienced a shift in value, weakening to 1.1651 US dollars. This translates to a dollar value of 0.8583 Euros.
