DAX Drops Amidst Weak PMI, GDP
(RTTNews) - The DAX index that tracks the performance of the 40 largest companies listed on the Frankfurt Stock Exchange recorded a decline on Friday amidst weaker-than-expected economic data. Sentiment was weakened amidst concerns about the bleak economic outlook for Germany as well as Europe.
The HCOB Flash Germany Manufacturing PMI which was seen steady at 43 unexpectedly edged up to 43.2 in November. The Services PMI which was seen steady at 51.6 percent unexpectedly declined to 49.4. The Composite PMI showed 47.3 while markets had expected it to be steady at 48.6. All the three readings remained in the contraction zone. Consequently, the Euro Area's manufacturing PMI, services PMI and Composite PMI recorded unexpected declines.
Final third-quarter data released earlier in the day showed the German economy expanded by 0.1 percent quarter-on-quarter versus the initial estimate of a 0.2 percent rise. The reading however implied a slight rebound from the 0.3 percent contraction in the previous period.
The DAX is currently trading 0.23 percent lower at 19,128.11, versus the previous close of 19,173.15. The day's trading ranged between a high of 19,271.71 and a low of 19,037.77.
In the 40-scrip index, 19 scrips only are trading in the overnight green zone. Vonovia topped with overnight gains of 3.7 percent. Sartorius and Zalando have both rallied more than 3 percent in the day's trading. E.ON, Symrise and RWE followed with gains of more than 2 percent.
Deutsche Bank topped losses with a decline of 3.24 percent. Commerzbank has slipped 2.8 percent. Airbus Group, Porsche Automobil Holding, BMW and Daimler Truck Holding followed with losses of more than a percent.
Amidst the Dollar's surge, the EUR/USD pair has slipped 0.38 percent. It is currently trading at 1.0433 after ranging between 1.0499 and 1.0333. The EUR/GBP pair has edged up 0.06 percent to 0.8325. The EUR/JPY pair has also decreased 0.53 percent to 161.02. German bond yields have decreased 2.5 percent overnight to a 4-week low of 2.2545 percent. The yield which was at 2.3130 percent at the previous close ranged between 2.3440 percent and 2.2335 percent in the day's trading.
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